China Credit: No Need for Excessive Pessimism

China's April credit growth slowed as private demand remains weak, but ANZ maintains a neutral outlook, expecting no further rate cuts as policymakers prioritize stability over expansion.

Key Takeaways

• 1.April credit data showed a significant slowdown, with new yuan loans totaling CNY 8,590bn YTD, missing market expectations.
• 2.Despite weak private sector demand, ANZ does not expect interest rate or RRR cuts this year due to stabilizing growth and inflation.
• 3.Household loan weakness (down CNY265bn y/y) is likely driven by mortgage pre-repayments rather than just poor sales, reflecting low property confidence.

Table of Contents

• Highlights of the data
• The Outlook
• Important Notice

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