The Traderszone Network

Published in TZ Latest News 13 August, 2014 by The TZ Newswire Staff

As Chinese Credit Plummets US Stocks Soar On Hopes Of More PBOC Easing; But Is Conventional Wisdom Again Wrong?

For those who are perplexed why today stocks soared despite a renewed battery of horrendous economic results, the answer lies in China, where overnight the PBOC reported that July aggregate credit creation (aka Total Social Financing), at least the “as reported” variety, plunged by the most ever, and instead of growing at the expected RMB1.5 trillion, it registered a monthly change of only RMB273 billion, or a miss to expectations of over 80%, and a complete collapse from the CNY1,974 billion reported in June.

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