China Needs Credit Growth to Reverse Slowdown: Chart of the Day

China’s economy is moving in tandem with credit expansion and the government needs to increase social financing if it wants to revive growth, according to China International Capital Corp.

The CHART OF THE DAY shows corporate and social borrowing rose at the slowest pace in more than eight years in April while the January-March 7.4 percent increase in gross domestic product was the least in six quarters. That compares with 35.3 percent credit growth in November 2009, the fastest since Bloomberg began compiling the data in 2003, followed by a GDP increase of