Chinese credit slows even faster

Wednesday 17 October 2018

Uh oh. Chinese new yuan loans for September were out last night and the numbers are a little worrying. On the surface they appear to be rebounding with good bank loans of 1.38tr yuan and total social financing of 2.21tr yuan:

But the PBOC included local government bonds in the TSF number for the first time which gave it an artificial boost. Despite this, non-bank finance is still weak with traditional shadow bank activity pulling it way down:

It inflated the growth rate:

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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.