Chinese credit still has the brakes on

Tuesday, 14 August 2018

China released new yuan loans last night and the result is more slowing in July. Bank lending was strong at 1450bn yuan. But total social financing was much less so at 1040bn yuan meaning shadow finance contracted for the third straight month down a whopping -440bn yuan::

This is now an unprecedented crash in shadow credit:

And the new yuan loans three month moving average is getting worse not better, now down -26% year on year:

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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.