DeepDive: Data Dump May 2024

In this Data Dump, we delve into China’s latest macroeconomic data, including deposit flows, borrowing demand, and recent inflows into wealth management products. Early last year, we argued that consumers were unlikely to go on a spending spree in 2023 and suggested that the sharp rise in deposits in 2022 was, at least in part, due to a re-allocation of assets from WMPs to deposits. Households, and corporates, have recently begun to shift some of their assets back. Our DataDump has more.

Household borrowing remains weak year-to-date (see chart), posting its worst April going back to at least 2009 after a more solid March print. Both short-term and long-term loans came in weak, confirming persistent sluggish demand for consumption and housing. Household loan data have pointed towards a continuation of last year’s uneven demand pattern so far this year.