That is keeping with the more subdued risk appetite, which more or less kicked off after a set of dismal economic releases from China earlier today. That prompted serious concerns about China’s domestic demand in general, as rate cuts and liquidity injections from the PBOC are failing to bring about a change in the economic trend.

It looks like China needs more than just monetary policy to do the heavy lifting and if the loan demand conditions are any indication, it is that it won’t be long until we start to see some serious cracks show up.