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China September lending figures are out and there’s no secret to what’s driving current activity: debt. New yuan loans were 787 billion, but more significantly, shadow banking added another 613 billion for a total of 1.4 trillion:
Shadow banking is still off its highs of early this year but is powering on at 44% of total financing:
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Money supply growth was flat 14.2%. No further slowdown in this data.
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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