Posted on 01/16/2015 5:58:00 PM PST by Lorianne
Two months ago calls for broad-based stimulus in China were all the rage, but a sudden spike in shadow banking has led analysts to revise their expectations for looser monetary policy.
Aggregate social financing, a measure of credit that covers bank lending and shadow banking activity, hit one-year high of 1.69 trillion yuan ($273 billion) in December, up from 1.15 trillion yuan the previous month, official data showed on Thursday.
"A surge in shadow bank credit – entrusted loans, trust loans, banker's acceptances, corporate bonds and non-financial enterprises' domestic equity – was responsible for December's considerably larger than expected increase in aggregate financing," said Tim Condon, head of Asia research at ING in a note on Friday, noting that shadow bank credit exceeded new yuan-denominated loans for the first time in 2014.
(Excerpt) Read more at cnbc.com ...
Better check your portfolio. They have ways of hiding that you’re investing in China in the reports
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.