- Prior +8.3%
- New yuan loans -¥50.0 billion vs ¥300.0 billion expected
- Prior ¥2.24 trillion
I’m a little stumped here in trying to read into this negative reading for new bank loans from China this month. It is either an erroneous error or it will be the first time a negative print is seen since July 2005. But taking a look at new lending from January to July, that totals to ¥12.87 trillion and is below the estimated ¥13.22 trillion.
Beijing is set to launch a wave of subsidies though, potentially generating trillions in new loans in order to stimulate domestic spending and bolster demand conditions. So, there’s that to look forward to but this month’s data is a bit off colour in that sense due to what is being reported above.
