Although a slight uptick in activity was expected, the August data turned out to be even better than anticipated. Fiscal support shored up investment but the real bright spot was a healthy pick-up in...

The People’s Bank has just announced a cut to bank reserve requirements. With private sector credit demand still weak, this is a gesture rather than a meaningful support measure. Substantial rate cuts...

The quantitative tools that the PBOC relied on to pump up credit growth during previous downturns have become ineffective due to weak demand. That leaves interest rates as the main avenue for monetary...

China’s bank loan growth stabilised in August after declining for three consecutive months, and broad credit growth edged up from July’s record low. We think that policy easing could drive a modest...