Data from Friday from China showed new bank lending in China rose less than expected in March, although up from February. Broad credit growth hit a record low.
Chinese banks new yuan loans in March were 3.09 trillion yuan
- from 1.45 trillion yuan in February
- expected was 3.56 trillion yuan
- new loans were lower than 3.89 billion yuan in March 2023
M2 money supply +8.3% y/y
- slowest expansion since September 2023
- expected was +8.7%
- prior 8.7%
Total social financing (a broader metric of credit that also includes nonbank financing) was 4.87 trillion yuan
- better than expected of 4.70 trillion yuan
- for the first quarter was 12.93 trillion yuan, down by CNY1.61 trillion from the same period last year
Capital Economics:
- "Bank loan and broad credit growth in China both decelerated sharply in March,"
- “Given the persistent weakness of private credit demand any pick-up will be modest and short-lived, unless the PBOC shifts to a far more aggressive approach”
- “There is no sign of that happening – and current pressure on the renminbi makes substantial rate cuts even less likely”
(bolding mine)
Info via Reuters and Wall Street Journal.
