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<Research>JPM: CN Apr Credit Data Way Below Expectations; Big Four SOE Banks Preferred for Defensive Positioning
Recommend 18 Positive 24 Negative 13 |
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China's credit data for April were apparently weaker than expected, with Aggregate Financing to the Real Economy (Flow) and New RMB Loans both way below consensus and JP Morgan's forecasts. Among them, the single-month contraction in both household loans and corporate loans was the largest on record. The bank believed April's weak credit was partly affected by seasonality, but the magnitude exceeded expectations. It recommended a more defensive portfolio positioning and favored the Big Four SOE Banks with stronger loan pipelines. The report noted that Aggregate Financing to the Real Economy (Flow) in April amounted to RMB620 billion, about half of the market expectation of RMB1.25 trillion and JP Morgan's forecast of RMB1.24 trillion. New RMB Loans decreased by RMB10 billion, far below the market expectation of RMB300 billion and the broker's forecast of RMB271 billion. Household loans contracted by RMB787 billion MoM, while corporate loans contracted by RMB870 billion MoM, both marking the largest single-month declines on record. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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