China Data Response Bank Lending & Broad Credit (Aug.) There was a further deceleration in credit growth last month, with a new wave of lockdowns adding to the problems in the housing market that have been hitting credit demand. Credit growth will... 9th September 2022 · 2 mins read
China Data Response China Consumer & Producer Prices (Aug.) Consumer price inflation fell in August and remains below the PBOC’s preferred ceiling of 3%, leaving room for the Bank to ease policy further. Meanwhile, producer price inflation declined to its... 9th September 2022 · 2 mins read
China Data Response FX Reserves (Aug.) A sizeable fall in the value of China’s foreign exchange reserves in August may be further evidence of the PBOC pushing back against the slide in the renminbi. If the currency were to breach 7 to the... 7th September 2022 · 3 mins read
China Data Response China Trade (Aug.) China’s export volumes fell last month by the most since March. Partly, this was due to the backlog of orders that built up during Shanghai’s lockdown having been cleared and ports returning to normal... 7th September 2022 · 3 mins read
China Economics Weekly COVID threat, marriage slump The number of Chinese cities tackling virus outbreaks is now almost as high as it was at the peak of the Omicron wave. The hit to activity remains smaller. But with Chengdu entering lockdown and other... 2nd September 2022 · 9 mins read
China Chart Pack PBOC moving to defend key renminbi threshold The renminbi has weakened 2.5% against the US dollar since mid-August and is nearing our year-end forecast of 7.00/$. This is mostly a reflection of broad dollar strength – the renminbi is little... 31st August 2022 · 13 mins read
China Economics Weekly Stimulus continues to underwhelm The recent flurry of policy announcements amounts to less than meets the eye. The rate cuts are too small to revive loan demand and the new commitments for direct credit support total just 0.8% of GDP... 26th August 2022 · 7 mins read
China Activity Monitor CAP: Recovery loses steam at the start of H2 Our China Activity Proxy (CAP) suggests that the economic rebound following the hit from lockdowns had petered out in July. And despite increased policy support, growing headwinds will continue to... 22nd August 2022 · 3 mins read
China Economics Update PBOC extends lifeline to struggling economy Today’s reductions to both the one-year and five-year Loan Prime Rates (LPR) continue the PBOC’s efforts to support the faltering economy. We expect additional easing to follow in the coming months... 22nd August 2022 · 3 mins read
China Data Response China Activity & Spending (Jul.) The July data suggest that the post-lockdown recovery lost steam as the one-off boost from reopening fizzled out and mortgage boycotts triggered a renewed deterioration in the property sector. We... 15th August 2022 · 3 mins read
China Economics Weekly PBOC turns less dovish on inflation The PBOC’s latest monetary policy report struck a less dovish tone, warning that inflationary pressure may increase in the near-term. We think these concerns are overdone and that inflation is more... 12th August 2022 · 6 mins read
China Data Response China Bank Lending & Broad Credit (Jul.) Credit growth dropped back last month, with property market jitters weighing on bank lending. It may continue to disappoint in the near-term given that sentiment among homebuyers is likely to stay... 12th August 2022 · 2 mins read
China Data Response Hong Kong GDP (Q2 Preliminary) Hong Kong’s GDP ticked up last quarter as the easing of virus restrictions boosted consumption. But the recovery was muted, held back by a drop in exports. We think growth will remain weak given... 1st August 2022 · 3 mins read
