15 Jan 2014
China's lending figures hint softer growth
FXstreet.com (Bali) - China's big miss in new loans for the month of December is suggestive of a slowdown in the economy, with some talk that Q4 GDP could now come below expectations.
While the latest data is negative in terms of growth, it seems to be in alignment with China's tighter policy objectives, in which action are being taken aimed at minimizing debt risks, thus limit the lending practices/shadow system is welcome news too.
According to Amanda Tam, Analyst at IFR Markets: "The more obscure credit channels outside of bank lending - shadow banking - is still growing faster than the more traditional sources but this reflects the expanding role of the private sector as part of re-balancing efforts + the gap between the two has narrowed noticeably."
While the latest data is negative in terms of growth, it seems to be in alignment with China's tighter policy objectives, in which action are being taken aimed at minimizing debt risks, thus limit the lending practices/shadow system is welcome news too.
According to Amanda Tam, Analyst at IFR Markets: "The more obscure credit channels outside of bank lending - shadow banking - is still growing faster than the more traditional sources but this reflects the expanding role of the private sector as part of re-balancing efforts + the gap between the two has narrowed noticeably."