China Economy Commodities Iron ore price

China yanks credit handbrake

Thursday, 13 May 2021

Commodity prices are a bubble and the pin is closing in fast. China released credit data for April overnight the slowdown is outpacing even my expectations. China has yanked a credit handbrake.

Total social financing came in at 1.85tr yuan within which bank credit made up 1.47tr

This is down 38.5% year on year, the second decline of such magnitude in a row:

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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.