China’s credit demand remains under pressure, according to Bank of America
Securities economists.
They note March data show households and firms are still cautious on new
borrowing, with added uncertainty from Middle East geopolitical tensions. While
manufacturing and infrastructure investment may improve on resilient exports and
policy financing support, overall credit demand remains weak.
They also point out that stronger secondary home sales in tier-1 cities such as
Shanghai have yet to translate into broader property activity or mortgage
growth.