China's bank loans may accelerate

China's money and credit data are expect to be mixed in May.

First, bank loans and corporate bonds should have rebounded on Beijing's pledge to ensure funding to ongoing infrastructure projects, while non-bank credit probably remained under pressure from tightening regulations on margin financing, suggests Societe Generale. 

Second, narrow money growth should have started to feel the impact of the PBoC's monetary policy easing, while broad money growth could have inched lower due to a negative base effect. This report holds the key to the scenario of H2 growth stabilisation. If the data were to miss the conservative forecasts, the PBoC must ramp up easing efforts sooner rather than later, said Societe Generale in a report on Wednesday.