Pantheon with the note:
- Overall credit growth slowed as the economy was ravaged by Covid outbreaks, again.
- Policy-related financing picked up after officials returned home from the Party Congress.
- Rising M2 growth likely indicates household precautionary saving behaviour.
China’s Credit Data Worsen as Covid Outbreaks Buffet Economy
Growth in credit and M1 were below consensus expectations in November, as the Chinese economy was slammed by new Omicron surges. China has started to shift away from zero-Covid policy, but the streets are largely empty in Beijing and Shanghai, except for long queues at some PCR testing stations.
