china dials back

· Chinese economic recovery continues in Apr. According to preliminary economic data,
China’s recovery gathered pace in Apr. Gauges from four providers all increased in April
from March, while sub-indexes for employment showed stronger demand for workers.
Bloomberg goo.gl/JoRHLy
· China tells banks to dial back lending — PBOC Asks Banks to Limit April New Loans to 70%
Target according to a report in Caixin. Chinese central bank conducted window guidance to
demand banks to restrain April new loans to 70% of the month’s target – Bloomberg/Barron’s goo.gl/YTM3yY

· Chinese stocks sink amid rising corporate default worries and on speculation investors are
shifting money from equities into commodities – WSJ goo.gl/sjAFO6
· China’s debt – Chinese debt reached a record 237% of GDP as of the end of Q1 according
to data, far outpacing its EM peers (debt was only 148% of GDP as of the end of ’07); the
absolute debt level now stands at $25T. Total new borrowing increased by CNY6.2T in Q1,
the largest three-month surge on record and up ~50% over Q1:15. “Every major country
with a rapid increase in debt has experienced either a financial crisis or a prolonged
slowdown in GDP growth” – FT goo.gl/UHkHbj
· China property market — China’s banking regulator in Shanghai is halting business between
commercial banks and six real estate agencies for a month in a bid to cool the property
market; the regulator will also suspend the personal mortgage business for two months of
seven local branches of banks – Bloomberg goo.gl/Hb2LLT