The data from China for April credit growth:
April new yuan loans (CNY), 1100bn
- expected 815.0bn, prior was 1020.0bn
Aggregate financing (CNY, or RMB ... same) 1390bn
- expected 1150.0bn, prior was 2118.9bn
Money supply M0 y/y: 6.2%
- expected 6.8%, prior was 6.1%
Money supply M1 y/y: 18.5%
- expected 17.3%, prior was 18.8%
Money supply M2 y/y: 10.5%
- expected 10.8%, prior was 10.6%
I bolded the two of most focus in this data, both surging above what was expected. The PBOC is trying to slow the pace of debt growth in the country, there is a focus on deleveraging. But the data for these two show the Bank still has work to do.
Reuters have a bit more on the data:
- "April's credit expansion could have been due to front-load funding demand ahead of regulatory tightening, and the risk tilts to the downside in the coming months," said ANZ's China economists David Qu and Betty Wang in client note
- Analysts say Beijing is keen to ensure steady economic growth ahead of the 19th Communist Party Congress later in the year
- Chinese leaders have pledged to shift the emphasis to addressing financial risks and asset bubbles ... China's central bank has been guiding short-term interest rates higher to help contain debt perils, though it is treading cautiously to avoid hurting economic growth
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Mike had some of this published on Friday, link here
