China: Credit conditions deteriorate sharply in April
May 13, 2015
New yuan loans totaled CNY 708 billion (USD 114 billion) in April, which was well below the CNY 1.18 trillion recorded in the previous month. Furthermore, the print undershot the CNY 903 million that market analysts had expected. In the 12 months up to April, new yuan loans totaled CNY 10.4 trillion (March: CNY 10.4 trillion).
Total social financing—a broader measure of liquidity in the economy that includes loans, bonds and other non-traditional instruments—eased from CNY 1.18 trillion in March to CNY 1.05 trillion in April, which represented a six-month low. The print came in well below the CNY 1.20 trillion that market analysts had expected.
Annual M2 growth, the broadest measure of money supply in China, fell sharply from March’s 11.6% to 10.1% in April. The result was below the 11.9% increase the market had expected and represented the smallest increase on record.