If you only ever read Goldman you’d live on another planet.
March loans and TSF data came in above expectations. Total RMB loans surprised the market to the upside mainly on stronger medium to long term loans – both households’ medium to long term new borrowing (mostly mortgages) and corporates’ medium to long term new borrowing improved in March. In contrast, bill financing and households’ short-term loan growth slowed in March vs February. This composition of loan data suggests further improvement in credit demand in the month, although news reports suggested some signs of financial re-leveraging amid falling loan interest rates. Total social financing month-over-month annualized growth slowed from the very fast pace in February, mainly on the back of lower corporate and government bond issuance. M2 month-over-month growth accelerated in March on the back of strong credit data.
Strong only in terms of expectations, which are managed. Not actually strong. Pantheon has a much better take.
