Flash: Does China have constrained access to funding? – Deutsche Bank

FXstreet.com (New York) - According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Interbank liquidity conditions continue to ease in China, however reports keep filtering out about constrained access to funding in the real economy.”

Recently, it was reported by Chinese news agency Caixin that a number of branches of the big four banks had halted lending to businesses and individuals apparently "due to mounting liquidity pressures" (Caixin). At a micro-level, reports suggest that a number of corporates in cyclical sectors are finding bank funding difficult to come by which is a situation that has persisted for a number of months now. So we'll have to watch out for the impact of this in the data over the next few weeks.