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New Lending

Lending Spikes in China, Confidence Falls, & Consumer Prices Remain Tame for Now…

According to the China Securities Journal, Chinese banks lent almost CNY1.4 trn in new loans during January–third-largest monthly total on record. This was less than the CNY1.6 trn some outlets has been speculating on, but far more than what I expect the government would have liked. But, considering that it was reported that CNY1.1 trn […]

Increase in Chinese Bank Capital Requirements Likely to Further Reduce New Lending

Updating yesterday’s theme I was able to collect monthly new lending data from China.  The chart below shows the relationships between new lending in China and the BDI.  A recent decline of new lending in China is a likely factor behind the recent pullback in shipping rates and Chinese equity markets.  The decline in Chinese […]

Drop in Chinese Lending Leads to Declines In Both The Shanghai Composite & The BDI

A reader recently brought to my attention the fact that the BDI and the Shanghai Composite Index both appeared to have peaked from interim-term highs at the beginning of August (see chart).  After looking more closely at the data I quickly began to realize the significance of this relationship and its implications on shipping.  Let […]