China’s Credit Growth Slows Down: What It Means for Iron Ore

Aggregate financing in China (MCHI), which reflects the total funds provided by a financial system to its nonfinancial sectors and households, was ~1.2 trillion yuan in February 2018 compared to ~3.1 trillion yuan in January 2018. China’s new bank loans reached 839.3 billion yuan in February 2018 compared to a record 2.9 trillion yuan in January 2018. The M2 money supply, which includes cash, checking deposits, savings deposits, money market mutual funds, and other time deposits, grew 8.8% in February 2018 from February 2017. It was higher than 8.6% growth in January 2018 and 8.1% growth in December 2017.