PREVIOUS TRADING DAY EVENTS 11 April 2023

Announcements 

In China, the yuandenominated loans issued to consumers and businesses during the previous month rose to 3.89 trillion yuan, exceeding forecasts, while the previous figure was reported only at 1.81 trillion yuan.

This signals that the central bank is looking to increase liquidity in the economy and support bank lending so investing activity can take place. New corporate mid and longterm loans jumped from a year ago.

Lending and financing activities were recorded quite high this year, as the government increased its activities on issuing bonds, and corporate credit demand increased with the abandonment of Covid restrictions.

Local authorities have announced plans to raise spending on major construction projects by 17 this year.

If the trend in credit growth extends into April and May, it would translate into significant support for the economys recovery through investment financing, said Raymond Yeung, chief economist for Greater China at Australia New Zealand Banking Group Ltd.

The figures show firms are making greater use of the governments loan support. They also show a recovery in household demand for mortgages another sign that the property market slump is starting to ease. We see credit growth continuing to climb in 2Q, albeit gradually, supported by a looser policy stance and a broader recovery in demand, the economist Eric Zhu reported at Bloomberg.

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