China: New yuan loans beat expectations - TDS

Analysts at TD Securities note that the China’s 2018 new yuan loans data announced today implies that the Dec data for new yuan loans beat expectations.

Key Quotes

“Our estimate suggests that Dec new yuan loans grew by CNY 1.08trn (consensus CNY825bn). Separately, there were lots of reassuring comments about both monetary and fiscal stimulus from Chinese officials today, from both the MoF and PBoC.”

“We will need to see concrete signs of action before markets are convinced, but the comments are in the right direction. In particular they are focusing on areas of pressure such as autos, weakness in private companies as well as highlighting prospects for major and broad based tax cuts.”