Data from China on credit in April, via Bloomberg Economics (gated), shows it shrank for the first time

  • government bond sales slowed, more government bonds were repaid than sold in the month
  • loan expansion was worse than expected in a sign of weak demand

Aggregate financing is a broad measure of credit. It fell by almost 200 billion yuan in April from March

  • the first time the measure has declined since comparable data began in 2017
  • looking back further, using a smaller data set that excludes things like government funding, it was the first decrease since October 2005
  • financing from shadow banking (activities outside the formal banking system) also fell

- also recorded a drop, weighing on overall credit.

Financial institutions offered 731 billion yuan

  • lower thann projected 916 bn

Growth rate of outstanding loans edged down to 9.1% y/y, from 9.2% in March


Coming up from China to make up somewhat for this slow down is:

Also from China over the weekend:

People's Bank of China pboc 25 April 2024 2