China’s total social financing fell to RMB1.55 trillion in April from RMB2.07 trillion in the month before, according to data released by the People’s Bank of China.
The number came in largely in line with market expectations of RMB1.48 trillion.
The number is mainly dragged down by new RMB loans, which fell to RMB774.7 billion in April from RMB1.05 trillion in March. The market consensus was expecting new RMB loans of RMB800 billion.
China’s M2 growth rebounded to 13.2% year-on-year in April, up from 12.1% in March, higher than the market expectation of 12.2％.
"We do not take the M2 growth rebound as a signal of policy easing, and still expect growth to slow in the second quarter, dragged down by tight credit conditions and a weak property sector," writes Nomura economist Zhang Zhiwei in a report.