Courtesy of Also Spracht Analyst.
Yesterday I talked about the pick-up in lending in the final week of May in the big four Chinese banks, which is a usual occurrence in China. Today, we are hearing the numbers for all banks and the number is much higher than expectations.
Sina is reporting that new loans from all banks could have come in at RMB800 billion for May:
Even better news (so it seems) is that medium- to long-term loans lending has picked up.
So there you have it. This is probably how things look like when government starts to force banks to lend to local governments and state-owned enterprises to throw more money into pointless projects, one of which takes the cake today. The China’s National Development and Reform Commission (NDRC) a.k.a. central planner has just approved a brilliant project (H/T: Victor Shih) which is going to do the following thing:
May 2012, the NDRC has approved the feasibility report of how to increase food production in the North-eastern region by artificially changing weather. The project will improve the ability for the North-eastern region to change the weather, which will in turn improve the nation’s food security, drought relief, forest fire prevention…