Chinese credit continues to slow sharply. New yuan loans for July came in at 1.06tr yuan with banks actually higher than that at 1.08tr yuan, implying non-bank credit shrank:
Month on month growth was -37% and the 3MMA is -22%:
The rolling annual resumed falling:
M2 slipped back to 8.3%
Since the deleveraging began, new credit is -16% and getting worse:
Broad credit slumped to 10.7%:
There is nothing here but more slowing ahead in economic growth, especially commodity-intensive areas. This implies considerable further falls for all metals.
RRR cuts will not be enough to lift this falling aircraft. It needs the throttle fully open or it will keep losing altitude.
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