It has been
over a year since I last highlighted the slow decline in
official lending statistics out of China. Since then not much has happened regarding the direction of Chinese lending growth; a slow decline continues.
I point you to
Steve Keen's debtwatch for why the rate of growth in lending is important.
The rate of lending growth peaked in October 2009 and has been declining ever since. Compare this to the
Chinese equity markets and you'll see how Chinese stocks haven't gone anywhere since October '09 either.
Unofficial lending is naturally harder to track but there are anecdotal signs of stress in this sector as well.
http://historysquared.com/ and
http://www.alsosprachanalyst.com/ are two good sites to follow the 'underground' lending market.
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