FT Alphaville " You only get the broad picture Posted by Kate Mackenzie on Sep 11 07:55. We'll start by quoting Stephen Green of Standard Chartered on the (possibly) unicorn-like big China stimulus: We know economists are paid to come up with meaningful numbers, but we just do not see how one can do so with China‟s current infrastructure policies, given the lack of any information being released. So the strategists look at other things and are particularly fond of bank loan data, as this is the main transmission mechanism for China's fiscal stimulus. New PBoC data out today for August showed net new Rmb lending was much higher than July's figure, and way above expectations - at Rmb703.9bn versus the median estimate of Rmb600bn. This is a reason to think stimulus is going through, says Nomura's Zhiwei Zhang: While this does look better at least compared to July, the August loan data release from the PBoC doesn't seem to have included the usual breakdown into terms. We can see from this chart from Bernstein Research - via BeyondBrics - that short-term loans and bill financing have made up the bulk of recent new loan activity: Anyway, the PBoC did release total social financing, its preferred way of aggregating credit, which actually looks pretty good if you're not bothered about the rapid growth in trust company loans: Related links: Is the 2012 China stimulus some kind of unicorn? FT Alphaville China economy shows more frailty - WSJ China stimulates, sort of - FT Alphaville This entry was posted by Kate Mackenzie on Tuesday, September 11th, 2012 at 7:55 and is filed under Uncategorised. Tagged with china, Trust companies.