China: Credit and monetary conditions continue to improve in September
October 18, 2016
Chinese banks extended CNY 1.22 trillion (USD 181 billion) in new yuan loans in September, which marked an improvement from August’s CNY 949 billion and represented a three-month high. September’s print also overshot the CNY 1.00 trillion the markets had expected. In the 12 months up to September, new yuan loans totaled CNY 12.0 trillion (August: CNY 11.8 trillion).
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—jumped from August’s CNY 1.47 trillion to September’s six-month high of CNY 1.72 trillion. The print exceeded the CNY 1.39 trillion the markets had expected.
Meanwhile, annual growth in M2—the broadest measure of money supply in China—rose from August’s 11.4% to 11.5%. The reading came in slightly below the 10.6% rise the markets had expected.