Still below market's forecast.
According to CCB International, China banks' April new loans amount to RMB774.7b, below consensus of RMB800b though loan structure still supportive. New MLT loans remained stable, but new short-term loans declined MoM. The loan structure is positive as MLT loans are usually FAI related and support economic growth.
TSF beat due to pickup in bond issuances despite slowdown in shadow banking. TSF reached RMB1.55t, above consensus of RMB1.475t. Bond financing is recovering after the regulatory crackdown last year. Off-balance-sheet lending, including entrusted loans, trust loans, and non-discounted bank bills, slowed MoM, mainly because of the hard line taken towards shadow banking by the PBOC and CBRC.
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