China Aggregate Financing May Further Slow in July: Daily

China's total outstanding aggregate financing in July may have slowed by 0.1 pp to 10.9% y/y, due to slower issuances of government and corporate bonds, the Economic Daily reported citing analysts. The growth rate is now close to the pre-pandemic level and likely to rebound in Q4 due party to faster pace of government bond sales, the newspaper said citing Li Qilin, chief economist of Hongta Securities. Analysts generally expect a looser money supply though are divided on whether the tight credit situation would actually change in H2, the newspaper said. The PBOC may further cut the banks' reserve requirement ratios in Q4 to offset maturing MLFs totaling CNY2.45 trillion, the newspaper said citing Li Chao, chief economist of Zheshang Securities. Some believe the authority will increase lending support for high-end manufacturing, green sectors and SMEs while strictly monitoring the financing in real estate and by local government financing vehicles, the newspaper added.