If you have read along over the past month we have had a lot of focus on China and from a macro view for a good reason. Currently, credit growth in China is stagnant, particularly in terms of the narrow money measure (M1). Authorities appear to be facing challenges in revitalizing credit flows, especially since further expansion in construction is no longer justifiable. There has yet to be a substantial reaction to this stagnation, and typically, GDP figures tend to reflect the impacts of reduced credit availability after some delay.