Here's how China banks' credit growth will be robust in 2013

Credit growth may reach 20% in 1H13.

According to Bank of America Merrill Lynch, system-wide credit growth in 1H13, if measured by the average YoY growth in outstanding amount of our revised total social financing (TSF), could largely maintain its relatively rapid pace at around 19-20% in 2H12, but may slow a bit in 2H13 on government concerns on inflation and overheating as well as base effects.

"We forecast that YoY growth of our revised TSF will slow to 18.6% in 2013 from 19.8% in 2012. By breakdown, growth in corporate bonds could stay elevated at 38% in 2013 though it will slow from 48% in 2012, and growth of trust and entrusted loans could be 29% in 2013 compared to 37% in 2012."