HALISTER1: China Loan & Money Supply Misses Raise Easing Pressure: BBVA

China Loan & Money Supply Misses Raise Easing Pressure: BBVA

(Bloomberg) -- Pressure may be growing on PBOC to ease after estimate misses for loan growth, money supply and factory output point to a slowing economy, says Le Xia, chief Asia economist at BBVA.
  • PBOC should expand scale of liquidity injection, though monetary stimulus will be negative for the yuan and needs to be balanced against the desire for currency stability: Xia
  • Shrink in aggregate financing due to recent regulation tightening for wealth-management products
  • Macro environment favors Chinese sovereign bonds in this moment
  • NOTE: July new yuan loans 463.6b yuan vs est. 850b yuan, while aggregate financing was 487.9b yuan vs est. 1t yuan
    • M2 +10.2% y/y vs est. +11%
  • Yuan is down 0.1% to 6.6444 per dollar
  • Yield on 2.74% govt bond due August 2026 falls 3 bp to 2.660%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Le Xia (Banco Bilbao Vizcaya Argentaria SA)

To de-activate this alert, click here

UUID: 7947283