China primes infrastructure pump as credit hits wall

Friday, 13 November 2015

China released its October lending data last night and it was not pretty. The headline numbers were bank lending at 513.56bn yuan vs 800bn exp and total social financing at 476.7bln vs 1.05trln exp. That is, shadow-banking contracted:

Shadow banking is especially vulnerable to capital flight so that is probably behind its steepening decline.

Year on year October credit fell 7.4% after its better recent run:

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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.