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.