By Iris Pang, Economist, Greater China
China's credit growth, including loan growth, was softer than expected. Shadow banking activities shrank, which implies funding for infrastructure projects mainly came through local government special bonds - likely to limit the overall activity growth of the economy
A broad measure of credit and liquidity, total outstanding social financing in China grew to CNY 1.4 trillion from 1.36 trillion in April according to data from the People's Bank of China. This was less than our expectation of CNY 1.9 trillion.
In May, Chinese banks loaned CNY 1.18 trillion, which