Data released on Friday showed that new bank loans in China grew less than expected in March, although up from February. Overall credit growth has reached a record level.
New yuan loans from Chinese banks in March amounted to 3.09 trillion yuan
- compared to 1.45 trillion yuan in February
- expected was 3.56 trillion yuan
- new loans were less than 3.89 billion yuan in March 2023
Money supply M2 +8.3% over one year
- slowest expansion since September 2023
- expected was +8.7%
- before 8.7%
Total social financing (a broader measure of credit that also includes non-bank financing) stood at 4.87 trillion yuan.
- better than expected by 4.70 trillion yuan
- for the first quarter, 12.93 trillion yuan, down 1.61 trillion yuan from the same period last year.
Economy of capital:
-
“Bank lending and broader credit growth in China slowed sharply in March,”
- “Given continued weakness in demand for private credit, any recovery will be modest and short-lived unless the PBOC takes a much more aggressive approach. »
- “There are no signs of this happening – and current pressure on the renminbi makes a substantial rate cut even less likely»
(mine in bold)
Information via Reuters and Wall Street Journal.
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