China Economy Remains Robust in Second Quarter
China Economy Remains Robust in Second Quarter

China Economy Remains Robust in Second Quarter

China Economy Remains Robust in Second Quarter

China’s broadest measure of new credit exceeded estimates and loan growth picked up, signaling that the economy remains robust into the second quarter.
- Aggregate financing stood at 1.56 trillion yuan ($246 billion) in April, the People’s Bank of China said Friday, exceeding all but one estimate in Bloomberg’s survey and the 1.33 trillion yuan reading from March
- New yuan loans stood at 1.18 trillion yuan, versus a projected 1.1 trillion yuan and 1.12 trillion yuan the prior month
- The broad M2 money supply rose 8.3%, compared with a forecast 8.5% growth.
The robust lending signals sustained growth momentum in the second quarter thanks to resilient domestic demand, even amid a campaign to curb excessive lending. Policy tweaks including a recent reserve-requirement ratio cut that encourages banks to lend more have buoyed sentiment, at a time when US-China trade tensions threaten to escalate.
“The data in general are not a surprise,” said David Qu, an economist at Australia & New Zealand Banking Group Ltd. in Shanghai. “The reserve requirement ratio, or RRR, cut in April hasn’t shown much impact as the time span is too short. This is still a neutral monetary policy stance, and the PBOC could possibly conduct further RRR cuts.”
Elsewhere in the report, measures of shadow banking declined:
- Entrusted loans, organized by a bank between borrowers and lenders, fell by 148 billion yuan
- Trust loans, made by trust companies to finance infrastructure and real estate, dropped by nine billion yuan
- Bankers’ acceptance, short-term credit issued by a company with a bank’s guarantee, rose by 145 billion yuan.
The total outstanding aggregate financing rose to 181.4 trillion yuan in April.
“Funding for growth continues to be sufficient to achieve policy targets and so any deceleration will be gradual,” said Dariusz Kowalczyk, a senior emerging-market strategist at Credit Agricole SA in Hong Kong.
“The M2 money supply growth rate remained near record lows and was well below the 8.5% on-year consensus, highlighting continued success in dealing with risks in the financial system.”

Short URL : https://goo.gl/BPmi86
  1. https://goo.gl/1w3qV5
  • https://goo.gl/BhgPpt
  • https://goo.gl/tgKSpH
  • https://goo.gl/dou7fL
  • https://goo.gl/VuajMK

You can also read ...

French Foreign Minister Jean-Yves Le Drian addresses CEDRE Conference in Paris on April 6, with Lebanese Prime Minister Saad Hariri on his right.
With the FIFA World Cup over and French victory secured,...
Handout picture shows IMF Managing Director Christine Lagarde on a screen as she speaks  during the G20 meeting taking place in Buenos Aires, on July 21.
The International Monetary Fund warned world economic leaders...
Australia  Faces Massive Economic Crash
Australia is facing an economic shock akin the global...
Dubai’s new business licenses in the second quarter of 2018 were down 26% from the same period in 2016.
In Dubai’s posh Jumeirah Beach residence district, luxury...
Germany Lifts Turkey Sanctions
Germany has lifted economic sanctions on Turkey and relaxed...
IFC to Inject $2 Billion in Egypt’s Private Sector
International Finance Corporation, a member of the World Bank...
Algeria Trade Deficit Sharply Down
Algeria’s trade deficit declined by 83.6% to $490 million...
According to a survey, 75.3% are facing difficulties in running their businesses this year.
South Korea’s major business lobby said Sunday it will file an...

Add new comment

Read our comment policy before posting your viewpoints