Chinese credit growth, which has been the key driver of China’s economic growth and has eased concerns about the fragility of the country’s economy, appears to have slowed in May.
Reports from HSBC and Nomura highlight that aggregate financing came in at RMB659.9 billion for the month, far below consensus, which was calling for growth of around RMB1 trillion, resulting in slower growth in stock outstanding to 12.6% year-on-year, from 13.1% in April.
Is the Trillion Dollar in New Q1 Credit in China Already Wearing Off?
New RMB loans hit RMB985.5 billion in May, above consensus of RMB750 billion. Nearly half of these loans were made to the household sector, which Nomura speculates was largely in mortgage loans — consistent with...
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