China's credit growth likely slid again in March

China is scheduled to release March monetary data from 10-15 April. Monthly new loans in the local currency is expected to have fallen to CNY 800bn (weaker than in the same month in previous years) from CNY 1.02tn in February.

China's credit growth has slowed as banks remain cautious about lending given their concerns regarding rising NPLs and as credit demand from corporates remains weak owing to high real interest rates. 

"We believe this was the case in March as well, with banks facing increased liquidity pressure and incurring high funding costs as more deposits moved to the equity market. We expect M2 growth to have slowed to 12% y/y from 12.5% in February on fewer new loans and continued policy intervention", says Standard Chartered