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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- This morning, aggregate financing came in lower than expected at 2.9tr CNY in September (vs. 3,050bn CNY exp.), down from revised 2,956bn CNY the previous month.
- The chart below shows that Chinese 'liquidity', which we define as the annual change in the Total Social Financing (TSF) 12M sum, fell to an all-time-low in September, which could continue to weigh on domestic and international assets.
- Historically, the annual change in TSF 12M sum has been a good leading liquidity indicator for a range of risky assets, from EM equities to the Australian property market and copper.
- In addition, we have also seen that the economic activity in China has been decelerating sharply in the past 6 months, emphasizing the downward pressure on domestic asset prices.
- Hence, we will now see if the sharp fall in Chinese credit impulse will ease the inflationary pressures in the coming months, or if the surge in energy commodities and thermal coal will send PPI inflation to new highs.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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