China: Financial conditions worsen in March
April 14, 2017
Chinese banks extended CNY 1.02 trillion (USD 148 billion) in new yuan loans in March, below February’s CNY 1.17 trillion. The print undershot the CNY 1.25 trillion the markets had expected. In the 12 months up to March, new yuan loans totaled CNY 12.3 trillion (February: CNY 12.6 trillion).
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—jumped from February’s CNY 1.15 trillion to CNY 2.12 trillion in March. The print was below market analysts’ expectations of CNY 1.50 trillion.
Meanwhile, annual growth in M2—the broadest measure of money supply in China—declined from 11.1% in February to 10.6% in March. The reading was an eight-month low and fell short of the 11.1% that market analysts had expected.