Chinese credit slows even more

Don’t look to China to save the global economy. October credit is out and was very weak with Aggregate Financing at 619bn yuan and bank lending at 691bn yuan:

That is, shadow banking resunmed its contraction:

The three month moving average for new loans moved closer to zero:

The rolling annual has stalled:

Though M2 held at 8.4%:

Under the bonnet, household loans (mortgages) keep slowing

And broad credit adjusted for local government bonds is falling away too:

There is nothing here but slower growth ahead. The PBOC is going to have to cut soon. Inflation is NOT an issue despite pork:

But the other issue is the currency amid trade war negotiations…

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