MNI 5 Things: China April Loan Data Shows Solid Loan Growth

     BEIJING (MNI) - The following lists key points from China April money

supply and credit growth data, released by the People's Bank of China Friday:

     - New loans increased by CNY1.18 trillion in April from March, slightly

above the median CNY1.15 trillion forecast in a MNI survey. It is higher than

the CNY1.10 trillion m/m increase recorded in April 2017. The financing demand

via loan channel remains strong.

- Total social financing (TSF) grew by CNY1.56 trillion in April from March,

higher than the MNI survey median, which projected CNY1.3 trillion, and also

higher than the CNY1.39 trillion m/m gain in April 2017. Strong TSF growth was

caused by high corporate bond financing. Net financing via corporate bonds rose

to CNY377.6 billion in April, above the CNY50.1 billion seen last April. 

     - Shadow banking continues to shrink under regulations. Trust loans,

entrusted loans and undiscounted bankers' acceptances, together decreased

CNY12.1 billion in April, compared with a decrease of CNY252.5 billion in March.

Undiscounted bankers' acceptances surprisingly increased CNY145.4 billion in

April, the highest growth since March 2017.

     - M2 grew 8.3% y/y in April, much lower than the 9.8% growth in the same

month last year. It accelerated slightly from the 8.2% y/y growth in March and

was slower than the 8.5% median of MNI survey. 

     - The spread between M1 and M2 growths was negative 1.1%, the same as in

March, as both M1 and M2 rose 0.1% in April. The negative spread, with M1 growth

lower than M2 growth may not be good for the economy as it could indicate that

companies are preferring holding extra cash over spending it on boosting

business activities. 

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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