Latest Chinese credit data for December has been released - 16 January 2020

China M2
  • Prior +8.2%
  • New yuan loans ¥1,140.0 bn vs ¥1,200.0 bn expected
  • Aggregate financing ¥2,100.0 bn vs ¥1,650.0 bn expected

A modest increase in money supply growth towards the end of last year but it still sits well within the range we have seen over the past two years or so. This just reaffirms the fact that China is continuing to strike a steady balance between deleveraging efforts and looser credit conditions to spur economic activity.