China’s new RMB loans was recorded at RMB708 billion in April, less than market consensus of RMB903 billion and compares to RMB775 billion a year ago, according to data released by the People’s Bank of China.
Total social financing aggregate came in at RMB1.05 trillion in April, lower than market consensus of RMB1.2 trillion and March’s RMB1.18 trillion.
It grew 12.2% year-on-year in April, down from 12.7% in March.
M2 increased 10.1% year-on-year in April, compared to March’s 11.6% growth.
"Weak monetary growth highlights the challenges the government faces in boosting growth. Despite the fall in the nominal interest rate, the real interest rate has been high and administrative loosening has not shown much effect yet," writes a research report by Goldman Sachs.
