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Regulator announces new round of IPOs

Investors debate the significance of the latest round of A-share IPO approvals.

17 July 2014

Targeted easing boosts credit in June

Recent targeted monetary policy adjustments resulted in a marked rebound in credit growth in June. The sum of total social financing (TSF) – the widest official measure of financing in the economy – and our estimate of underground lending achieved Rmb2.18tn in June, up 38% MoM and 72% YoY. While credit growth may provide short-term support for the economy, it remains to be seen how long this rebound will last, as rapid credit expansion may prompt policymakers to intervene so as not to undermine broader efforts to reduce shadow finance leverage.

15 July 2014

Selected financial charts

A selection of key financial data over the past fortnight.

03 July 2014

China’s monetary policy shift

Recent targeted moves to boost base money supply suggest that China’s central bank is set on managing liquidity through direct measures aimed at specific sectors of the economy, rather than previously used market-wide injection tools such as rate cuts or RRR hikes

03 July 2014

Lessons from the liquidity squeeze

A year on from the severe liquidity squeeze in June 2013, bankers and market participants have been debating the lessons learned and examining why there wasn't a repeat performance this year.

03 July 2014

Selected financial charts

A selection of key financial data over the past fortnight.

19 June 2014

Shadow finance slowdown intensifies

Our latest analysis of official and industry data highlights the slowdown in shadow financing seen since the middle of 2013, a trend that is raising default risks across a number of key sectors of the economy.

19 June 2014

Loan growth offsets shadow finance decline

Growth in formal bank lending, likely driven by the government’s so-called micro stimulus measures, pushed up the sum of total social financing (TSF) – the widest official measure of financing in the economy – and underground lending 16% YoY in May to Rmb1.61tn. However, shadow finance continued to contract on regulatory constraints, falling 25% MoM and contributing to an overall 9% sequential decline in credit.

13 June 2014

Selected financial charts

A selection of key financial data over the past fortnight.

05 June 2014

Local government debt risks mount

Our latest analysis of local government finances shows that local governments are finding it harder and more costly to access financing. Revenue is slowing, while a large amount of existing debt is coming due, making defaults by a number of local government financing vehicles increasingly likely.

05 June 2014
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