Just last week there were reports that China’s four big state-owned banks slammed on the lending brakes over the last month, leading us to wonder whether this was the beginning of the end for China’s booming market.
But hold on. While lending by the big four declines from 165.8 billion yuan to 110 billion, lending by other financial firms went crazy.
According to Caijing, new lending from financial firms surged from 23 billion yuan in August to 87 billion yuan, for an month-to-month increase of 278%. Don’t count this bubble out yet.