China Money November 2016


China: Banks boost lending in November

December 13, 2016

Chinese banks extended CNY 795 billion (USD 115 billion) in new yuan loans in November, an improvement from October’s CNY 651 billion. November’s print overshot the CNY 735 billion the markets had expected. In the 12 months up to November, new yuan loans totaled CNY 12.2 trillion (October: CNY 12.1 trillion).

Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—soared from October’s CNY 896 billion to an eight-month high of CNY 1.74 trillion in November. The reading came in well above the CNY 1.5 trillion the markets had expected.

Meanwhile, annual growth in M2—the broadest measure of money supply in China—inched down from October’s 11.6% to 11.4% in November. The reading came in slightly below the 11.5% rise the markets had expected and represented a three-month low.

FocusEconomics Consensus Forecast participants expect M2 to expand 11.3% in 2017, which is down 0.1 percentage points from the previous month’s forecast. In 2018, the panel sees M2 growth of 10.8%.

Author: Ricard Torné, Lead Economist

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China Money Chart

China Money November 2016

Note: New yuan loans in CNY billion and year-on-year variation of M2.
Source: People’s Bank of China (PBOC) and FocusEconomics calculations.

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