China business activity recovering thanks to "credit-soaked" quarter - CBB Survey

The quarterly private survey of thousands of Chinese firms by China Beige Book International (CBB) pointed to an unexpected upturn in the Chinese business conditions following the disappointing Q4 growth outlook that re-ignited China slowdown fears.

CBB said in a statement: “Credit is surprisingly expensive... Credit costs need to be further stabilized or the current rally will falter.”

“Even traditionally disadvantaged firms in the credit markets are no longer so - at least for a quarter: private firm borrowing outpaced state-owned enterprises in the first quarter.”

“Along with a growing list of government support measures, signs of progress in U.S.-China trade talks may also have been a factor behind the improvement in business confidence.”