The China Beige Book points to weaker fourth-quarter growth which was the weakest of 2019, but some improvements were evident. Based on a survey of 3,300 Chinese firms, manufacturers and services saw an improvement compared to the previous quarter, but still the rate of slower growth each year is evident. Chinese firms are seeing new orders fall, as corporate borrowing is falling. The four core sectors of manufacturing, retail, services and property, for the first time since 2012 are reporting over 30% 0f said names are borrowing. Shadow banking, the loan market used by smaller firms who use this less-regulated market, is on the increase again. China continues to adjust to economic challenges as it moves from an export driven economy to a domestic demand and services driven economy. Shadow banking by the way, accounted for two-fifths of all loans for a record sixth straight quarter.
China Corporate Borrowing Increases, Cash Flows Fade
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