Latest Chinese credit data for December has been released

  • Prior +8.0%
  • New yuan loans ¥1,080.0 bn vs ¥825.0 bn expected
  • Aggregate financing ¥1,590.0 bn vs ¥1,300.0 bn expected

Broad money growth continues to hold steady around the 8% level over the past few months and continues to suggest that China is still somewhat keeping up with its deleveraging efforts but not pursuing it in a more aggressive manner as it did in 2017 and at the start of 2018.

With the economy facing some downwards pressure, Chinese authorities will have to balance out weeding out financial system risks while keeping the economic growth at a healthy level this year.