From Moody's in Hong Kong, their latest Quarterly China Shadow Banking Monitor

  • Moody's says economy-wide leverage continues to increase
  • Total social financing (a measure of broad credit) has risen to an estimated 220% of GDP from 206% at end-2015
  • Credit flows are being sustained by bank lending, especially mortgage loans, and a revival in corporate bond issuance
  • The growth of shadow banking components included in TSF remain subdued
  • However, Moody's notes that some of the fastest growing shadow banking components are not included in TSF

Concerns over the rate of credit growth on China continue.