HKD loans hike by 11.5% in 1Q14

But don’t expect strong expansion.

According to UBS, HKD loans expanded 11.5%y/y in 1Q14.

Broad money picks up in tandem with credit growth.

Here’s more from UBS:

Money and credit are pro-cyclical indicators. Normally a large expansion in base money will lead to an expansion in broader liquidity aggregates and help boost the economy.

A moderate cyclical recovery should translate into some pick up in credit demand in 2014; but the subdued housing market and the property cooling measures will likely preclude any strong credit expansion.