China Credit Growth Beats Estimates as Economy Maintains Pace
- Aggregate financing exceeded all but one economist forecast
- Some measures of shadow banking declined amid debt crackdowns
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China’s broadest measure of new credit exceeded estimates and loan growth picked up, signaling that the economy remains robust into the second quarter.
The robust lending signals sustained growth momentum in the second quarter thanks to resilient domestic demand, even amid a campaign to curb excessive lending. Policy tweaks including a recent reserve-requirement ratio cut that encourages banks to lend more have buoyed sentiment, at a time when U.S.-China trade tensions threaten to escalate.