On Monday China’s central bank released data as follows:
New bank loans Total social financing M2 (annual rate %)
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April 774.7 1550 13.2
MNI survey forecast median value 850 1650 12.2
March 1050 2070 12.1
April 774.7 1550 13.2
MNI survey forecast median value 850 1650 12.2
March 1050 2070 12.1
Unless special noted, the above data unit was one billion Yuan
Factors:
- at the end of April RMB deposit balance annual rate rose by 10.9%, compared to the end of March rose by 11.4% .
-at the end of April RMB loans annual rate rose by 13.7%, compared to the end of March rose by 13.9%.
-at the end of April M0 annual rate rose 5.4 percent, compared to the end of March rose by 5.2%.
-at the end of April M1 annual rate rose by 5.5%, compared to the end of March rose 5.4%.
China April new increasing of loans and total capital of social financing – this system got good graces by China’s central bank and took as credit activities guidance- were slightly below the market expectations. The growth was lower than the official annual target of 13% growth after March, in April the M2 growth was higher than official growth target 13%.
New credit decreased in April may indicate that high corporate struggles when they face higher borrowing cost, but anecdotal evidence suggested that the debt default risk was still concentrated in sectors such as overcapacity and excessive tension in the small private steel industry.