Latest Chinese credit data for March has been released - 12 April 2021

  • New yuan loans ¥2,730.0 bn vs ¥2,300.0 bn expected
  • Aggregate financing ¥3,340.0 bn vs ¥3,700.0 bn expected

New yuan loans beats on estimates, rebounding from the roughly ¥1,710 billion issued in February as China continues to walk a tightrope between bolstering the economic recovery process and managing credit/debt risks.

The total lending for Q1 is a record amount i.e. ¥7.69 trillion. As China looks to tighten policy, the trend in the data here will be of much significance in the months ahead.

For now, investors can take comfort in the figures above but we'll see what is to follow moving forward even as the PBOC pledges no sudden shifts in policy.