China:Credit growth slowed in May

Credit expansion slowed in May. Aggregate finance came in at RMB659.9bn for the month, far below consensus and our forecast of RMB1trn, resulting in slower growth in stock outstanding to 12.6% y-o-y, from 13.1% in April. More specifically:

    New RMB loans reached RMB985.5bn in May, above consensus and our forecast of RMB750bn, with growth of RMB loans outstanding unchanged at 14.4% y-o-y, from April. More than half of new loans were made to the household sector, we believe largely in mortgage loans, which is consistent with the rapid growth in property sales in May.