Sluggish July data and initial indications from our proprietary surveys in August appear to have borne out our prediction that the apparent uptick in Chinese economic growth seen in June would prove short-lived.

Despite indications of a further strengthening of Chinese economic activity in July, it remains too soon to call a sustainable recovery.

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

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.

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.

Our ongoing analysis of Chinese financial institutions continues to highlight the varied and wide-ranging impact that the liquidity squeeze in June 2013 has had on a wide range of institutions and asset classes. Listed Chinese banks’ 1Q14 financials provide further evidence of this trend.

Economists mull the implications of the central bank’s reduction of the deposit reserve requirement ratio for rural banks.

An analysis of listed banks’ 2013 results highlights the negative impact of the shadow finance squeeze on banks’ interest income, profits and non-performing loan ratios since the middle of last year.