The Central Bank of China has pumped billions of dollars into the economy in the past few years thru the various stimulus programs. As a result its balance sheet has ballooned to over $5 Trillion now making it the largest in the world. This figure is even bigger than total assets of the Federal Reserve. A Fidelity report noted that the Central Bank of China balance sheet has grown more quickly in the past decade than that of the Federal Reserve’s.
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Source: What a China selloff may mean for U.S. investors, Fidelity
One of the factors behind the soaring US stock prices in the past few years is the multiple QE programs implemented by the Federal Reserve. The chart below shows the relationship between the QE-3 in 2014 and the S&P 500:
Source: This chart shows the Fed’s balance sheet is still fueling stocks, MarketWatch, Jan 9, 2015