2014-03-16

Fresh Data on Trusts Still Shows At Best Little to No Growth From 2013

Newly issued trusts on top, newly established on bottom. Blue line number of trusts; red bar amount raised. These are estimates from 金牛理财, the data from last week has seen significant additions, although it will take more revisions just to assure yoy stagnation. The advice from 金牛 to Chinese trust investors is to remain prudent in this weak market and to completely understand the risks involved in each individual project.

Key takeaway remains the same: even if Chinese credit is readily available to the economy in general and we see a rebound from February's low credit creation, it does not mean credit is flowing to the marginal borrowers who tap the trust market.

Here's a look at WMPs.

Yield on products from big banks (yellow) versus small banks (orange) and the spread (blue).

Yield on guaranteed products (yellow), non-guaranteed (orange) and the spread (blue).

Yield on short-term vs long-term products, and spread.

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