SMM News: on the morning of May 9, the April credit data released by the people's Bank of China showed that the monthly increase in co-financing had halved from the previous month, and new RMB loans had fallen sharply to just over 1 trillion yuan, and the money supply data had not been as good as expected. M1 growth has fallen sharply again. Of this total, RMB loans were increased by 1.02 trillion yuan in April, with an increase of 1.36 trillion yuan in social financing. At the end of April, broad money (M2) increased by 8.5% over the same period last year, and narrow money (M1) increased by 2.9% compared with the same period last year.
After the high growth of the credit community data in March, the main data such as the credit community in April were slightly lower than market expectations. After the release of the data, fears of rising trade talks between China and the United States and unsatisfactory export data in the near future were superimposed. The onshore renminbi fell sharply against the dollar.
On May 9, the onshore renminbi fell below 6.82 against the dollar, trading at 6.8257 as of 21:00, after closing at 6.7817 the previous day.
The offshore renminbi, which fell below 6.86 against the dollar, once fell to 6.8627 and is now at 6.7336, after closing at 6.8070 the previous day.
The Huatai macro team believes that there is a marginal change in the narrow range fluctuation of the RMB exchange rate against the US dollar for more than one month in a row, and that the RMB depreciated against the US dollar in the second half of April, which put a certain degree of downward pressure on the official reserves. But the overall range is basically manageable.