from Zero Hedge
China’s tremendous credit expansion from the first quarter of 2016 is now ancient history.
After the creation of $1 trillion in aggregate credit, or Total Social Financing, in just the first three months of the year, last month China slammed the brakes on new credit creation, when every aspect of credit growth came solidly below expectations. Then overnight we got the latest, May, data. It confirmed that after the record Q1 credit deluge, the PBOC is now scrambling to slow down the tremendous debt tidal wave. The core component numbers, i.e., Chinese loans, were not bad as new loans of CNY985bn actually printed modestly better than expected: