Chinese shadow credit hits brick wall

Friday, 10 March 2017

China has released its lending data for February and the news for the outlook is mixed. The headline number was not so good at 1.15tr yuan in total social financing given the bank loan total was higher at 1.17tr:

In other words, shadow banking shrank:

M2 is fading as well, down to 11.1%, though its quarterly average is still at 14.3% and slowing:

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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.