Courtesy of Mish.
A major alarm bell just rang in China with the release of July credit figures according Macro Business Australia. Chinese Credit Just Collapsed and shadow banking with it.
Here are a couple of charts.
Yuan Loans
New yuan loans were 385.2 bn versus 780.0 bn expected and and prior was 1080.
Shadow Banking
Aggregate social financing was 273 bn yuan versus 1500.0 bn expected and prior was 1970 bn implying that shadow banking credit contracted 112 bn in the month.
Record Bank Deposit Slump
Bloomberg reports China Record Bank-Deposit Slump in July Erodes Lending Capacity.
China’s local-currency bank deposits fell by a record in July, eroding lenders’ capacity to extend new credit just as the world’s second-biggest economy shows signs of faltering.
Yuan-denominated deposits fell by 1.98 trillion yuan ($321 billion) to 111.62 trillion yuan from the previous month, the central bank said today. That’s the biggest monthly decline in figures dating back to 2000. …
