China credit data, and analysis from Merrill Lynch

Mike was onto the industrial production, retail sales and investment data yesterday

But the credit data managed to go through to the 'keeper.

Here it is here (it came out late yesterday):

May new yuan loans, 900.8bn

  • expected 850.0bn, prior was 707.9bn

Aggregate financing RMB for May, 1220.0bn (ps. RMB or yuan .... they're the same)

  • expected 1132.5bn, prior was 1050.4bn

Money supply M0 for May y/y: +1.8%

  • expected 3.6%, prior was 3.7%

Money supply M1 for y/y: +4.7%

  • expected 4.0%, prior was 3.7%

& Money supply M2 for y/y: +10.8%

  • expected 10.4%, prior was 10.1%

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Comments on this credit data from BoA/Merrill Lynch Research (Xiaojia Zhi, Sylvia Sheng). In brief:

  • The improvement in May money and credit data was better than the market expected
  • Showing some impact from the slew of monetary policy easing
  • Better liquidity credit conditions would reduce the downside risks to growth
  • But more easing is still necessary

As a ps., Boa/ML also commented on the earlier data:

  • May activity data show some moderate growth improvement
  • The set of activity data show some modest improvement in the economy in May, in response to policy easing efforts
  • The housing sector continued improving, as home sales, new starts and investment all improved