NEWS
China's September M2 growth picks up strongly; trade rebounds
15 October 2012
Category:
News, Asia, China, Global
By Asia Asset Management
Both M2 and M1 growth rebounded strongly on an annual and sequential basis in China in September, overshooting the market expectation and the People’s Bank of China's own M2 growth target at 14%. Meanwhile, mid- and long-term loans continued to improve, despite a slowdown in new lending due to reductions in discounted bills. All this, plus the surge in total social financing in September, confirmed that quantitative easing is filtering-through to support a gradual growth recovery, says HSBC in a report on Sunday (October 14).
September exports rebounded more strongly than expected, while imports resumed expansion after a contraction in the previous month. “This should alleviate concerns of a sharper growth slowdown,” said the report. “However, external challenges abound and Chinese exporters still face difficulties ahead. The slower contraction of ordinary imports implies a very gradual improvement in domestic demand, which should strengthen in the coming months once policy easing filters through.”
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