Latest Chinese credit data for January has been released - 20 January 2020
- Prior +8.7%
- New yuan loans ¥3,340.0 bn vs ¥3,100.0 bn expected
- Aggregate financing ¥5,070.0 bn vs ¥4,200.0 bn expected
Money supply growth eases a little but continues to sit within the range seen over the past two years. Loans/financing have increased on the month, and I reckon it will be a similar case in February amid the coronavirus outbreak situation.
That said, it's going to be an interesting period to see how Chinese companies deal with the repercussions of the outbreak and how Chinese authorities square up financial risks posed by a possible increase in bad loans/financing this year.
