China business activity recovering thanks to "credit-soaked" quarter - CBB Survey

Dhwani Mehta FXStreet

The quarterly private survey of thousands of Chinese firms by China Beige Book International (CBB) pointed to an unexpected upturn in the Chinese business conditions following the disappointing Q4 growth outlook that re-ignited China slowdown fears.

CBB said in a statement: “Credit is surprisingly expensive... Credit costs need to be further stabilized or the current rally will falter.”

“Even traditionally disadvantaged firms in the credit markets are no longer so - at least for a quarter: private firm borrowing outpaced state-owned enterprises in the first quarter.”

“Along with a growing list of government support measures, signs of progress in U.S.-China trade talks may also have been a factor behind the improvement in business confidence.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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