Archive

Sovereign Debt: China In A Bull Shop

• China’s belated baulking at an IMF-approved deal between Zambia and its Eurobond creditors has put the whole future of the Common Framework in doubt and places many developing countries in even more dire economic straits.

By Alastair Newton

China/US: Of Mountains And Molehills

• That Joe Biden and Xi Jinping will meet in person this week is to be welcomed. Furthermore, low expectations allow both sides to claim some ‘wins’. However, those expectations are rooted in the low probability of any substantive improvement in their relations.

By Alastair Newton

China M2 Money Supply 10.3% y-o-y (consensus 10.3) in Oct-23

- China's M2 Money Supply stayed constant at 10.3% year-on-year in October 2023, aligning with expectations and the previous month's reading. However, it is below the one-year average by 1.33 percentage points and the long-run average by 0.12 percentage points, indicating a slowdown in money creation.
- Loans by financial institutions in China grew at a rate of 10.9% year-on-year in October 2023. This growth rate surpasses the M2 Money Supply growth rate, potentially indicating favorable lending conditions supporting investment and consumption.

China CPI -0.2% y-o-y (consensus -0.1) in Oct-23

- China's Consumer Price Index (CPI) in October 2023 decreased by 0.2% year-on-year, 0.1pp under market expectations.
- The October CPI growth rate is the lowest since July 2023 and is 0.79 percentage points below the one-year average and 1.32 percentage points below the long-run average.