China reported its January total social financing data at RMB2.6trn over theweekend, a better than expected print. From a macro-perspective, this issupportive of our economist’s positive growth outlook for China, although therise in off-balance sheet items does suggest the shadow banking system is stillgrowing quite quickly. The positive caveat is perhaps that recent regulationsmay have begun to limit a segment of shadow lending, namely new trust loans,which decreased to RMB107bn.
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