Chinese Economic Data Worsens in April; Government Issues ‘Urgent Notice’ to Banks to Clear Hurdles to Provide Private Sector with Capital

The good times of March are over, assuredly. Data released this weekend are nothing less than disastrous for those embedded in the lie of a Chinese economic resurgence. Such a resurgence has led to sharp spikes in oil, copper and stocks. If we are to be slaves to the data and dog eating nation of China, all should reverse now.

Behold.

Growth in factory output cooled to 6 percent in April, the National Bureau of Statistics (NBS) said on Saturday, disappointing analysts who expected it to rise 6.5 percent on an annual basis after an increase of 6.8 percent the prior month.

China’s fixed-asset investment growth eased to 10.5 percent year-on-year in the January-April period, missing market expectations of 10.9 percent, and down from the first quarter’s 10.7 percent.

Fixed investment by private firms continued to slow, indicating private businesses remain skeptical of economic prospects. Investment by private firms rose 5.2 percent year-on-year in January-April, down from 5.7 percent growth in the first quarter.

Zhou Hao from Commerzbank Singapore said “It appears that all the engines suddenly lost momentum, and growth outlook has turned soft as well. At the end of the day, we have acknowledge (sic) that China is still struggling.”

In a related note, Reuters is reporting that Chinese government officials have sent ‘urgent messages’ to Chinese banks to clear up hurdles to providing them with lines of credit. This is an act of wanton desperation.

Chinese banks sharply cut new lending in April after a record first-quarter credit spree, much of which appeared to go to the state sector and may have helped inflate asset bubbles in real estate and commodities.

According to the document seen by Reuters, the China Banking Regulatory Commission (CBRC) is requiring financial institutions to conduct checks on their implementation of central government directives intended to make it easier for private firms to access bank credit.

It also tells them to work to resolve any problems in cases where lending support to private enterprise is insufficient, including small and micro-businesses.

The document requires institutions to report their implementation results to the regulator by May 20.

The CBRC did not respond to calls seeking comment from Reuters.

One of the people with direct knowledge of the order said the important part “is to implement State Council requests and notifications. The key points are areas where policy solutions have not been put into place, or measures have not been introduced, impacting private investment’s stable and sustainable growth.”

The Shanghai is unch and U.S. futs are flat. Noone gives a shit.