China’s Credit Growth Decelerates More Than Expected

The transcript discusses the People's Bank of China's (PBOC) response to weaker than expected credit data, focusing on aggregate social financing, New Yuan loans, and bond issuance. It highlights the contraction in shadow banking and the potential need for more aggressive measures by the PBOC, such as rate cuts, to stabilize the economy. The analysis suggests that economic stabilization may not occur until 2020, with Bloomberg Intelligence indicating the necessity for additional easing measures.

What was the aggregate social financing figure for October, and how did it compare to September?

• 321 billion U.S. dollars, much higher than September

• 88 billion U.S. dollars, much lower than September

• 321 billion U.S. dollars, much lower than September

• 88 billion U.S. dollars, much higher than September

What was the change in New Yuan loans from September to October?

• Increased from 12.5% to 12.7%

• Decreased from 12.7% to 12.5%

• Remained constant at 12.5%

• Increased from 12.7% to 13%

What did economists at Trivium suggest about the economic stabilization timeline?

• Stabilization is expected in the second half of 2020

• Stabilization might not occur until the first half of 2020

• Stabilization is already happening

• Stabilization is expected by the end of 2019

What potential actions did Bloomberg Intelligence suggest the PBOC might take?

• Cut interest rates by 5 to 10 basis points

• Increase interest rates by 10 to 15 basis points

• Increase interest rates by 5 to 10 basis points

• Maintain current interest rates

What does the weak credit data combined with industrial production numbers suggest?

• A need for additional easing from the PBOC

• An increase in industrial production

• No change in PBOC policy is needed

• A decrease in the need for monetary policy adjustments