China drops new credit bomb

Monday, 13 July 2020

China likes to pretend that it’s not unleashing credit stimulus but it is. New yuan loans for June are out and evidence is unequivocal. Total social financing was at 3.43tr yuan with banks accounting for 1.81tr of that:

Shadow banks are back in a big way:

The surge in new loans is obvious 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.