Chinese credit off to the races

Thursday, 11 June 2020

Again. New yuan loans for May were out last night and it’s game on for Chinese credit. Total social financing remains very strong at 3.19tr yuan of which only 1.48tr was banks:

Shadow finance is back although that growth is being exaggerated by tearaway bond issuance:

M2 has jumped to 11.1%

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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.