Investment Daily Note

Market Highlights

People's Bank of China announced that new yuanloan for July was RMB1.48 trillion (forecast: RMB750 billion), and M2 grew 13.3% year-on-year, compared with growth of 11.8% in June, which indicate that Chinese monetary policy continues to be accomodative.

China Banking Regulatory Commission announced that non-performing loan ratio for commercial banks at the end of Q2 was 1.5%, which rose 0.11 ppt. quarter-on-quarter, which indicates that with a slowing economy, banks are faced with heightening risk of bad loans.