This relates to the latest money supply and credit data here. Of note, broad credit growth hit a record low in March. And that bolsters the case for the PBOC to step up stimulus measures to try and prop up the economy. In lieu of that, the Chinese central bank is warning that:
"With the transition of the economy from high-speed growth to high quality development, it is even more necessary to change the mindset of one-side pursuit of scale and establish the concept of prioritising quality and efficiency. Credit allocation should ultimately be in line with the needs of the real economy. The key is to grasp the level well, rather than the more, the better."
Adding that they will channel more funds into technology innovation, green manufacturing and smaller firms. While at the same time, they will guide banks to maintain balanced credit allocation and boost stability and sustainability of loan growth.
