The Loans Number China Will Drown Its sceptics With

Scorpion Bowl

While Chinese food prices may be uncomfortably rising, here’s the data point the government will bandy about in order to dull criticism of their economic policy:

Bank lending grew by just 700 billion yuan in February, well below 1.39 trillion in January, and comfortingly 35% below the 1.07 trillion in new loans created during February 2009.

At the same time M2 money supply growth slowed in February, to 25.5% year over year from 26% in January, which indicates stabilisation for now.

So drink up on this loans data. Consensus sure is, since they expect a soft landing.

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