M2 fell in July. The yoy growth rate slowed to 8.1 percent from 8.5 percent in June. The 3-month annualized increase was only 7.6 percent. Notice on the chart, those big spikes are the end/start of year, the smaller peaks are the mid-year credit burst. You can see the declining trend.
SCMO: China’s bank lending weakened in July, suggesting Beijing’s stimulus efforts not working
Chinese monetary data for July was weak across the board, suggesting that Beijing’s efforts to galvanise new lending are not having the intended effect.
Chinese banks extended 1.06 trillion yuan (US$150.17 billion) in net new loans last month, down from 1.66 trillion yuan (US$235.17 billion) in June, according to the data released by the People’s Bank of China on Monday.
July’s lending was well below the 1.25 trillion added bank credit predicted by a Bloomberg survey of economists, and was the lowest level since April, when banks issued 1.02 trillion yuan in new loans.
The slump raises questions over the need for additional credit easing – when a central bank sets lower interest rates, for example – from the People’s Bank of China (PBOC) to offset the effect of a weakening economy and the impact of the protracted trade war with the United States.
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