China's credit growth to have declined again in March

China is scheduled to release March monetary data from 10-15 April. 

China's credit growth has slowed as banks remain cautious on lending amid concerns about rising NPLs and weak credit demand from corporates owing to high real interest rates. Analysts believe this trend remained intact in March, with banks facing increased liquiditypressure and high funding costs as more deposits moved to the equity market. 

According to Standard Chartered, the monthly new loans in local-currency terms to have fallen to CNY 800bn (weaker than in the same month in previous years), from CNY 1.02tn in February. M2 growth likely to have slowed to 12% y/y from 12.5% in February on fewer new loans and continued policy intervention.