China: Credit conditions improve in September
In September, Chinese banks distributed CNY 1.90 trillion (USD 282 billion) in new yuan loans. The reading came in above both the CNY 1.28 trillion recorded in August and the CNY 1.70 trillion that market analysts had expected. In the 12 months up to September, new yuan loans totaled CNY 19.5 trillion (12 months to August: CNY 19.2 trillion).
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—was broadly stable at CNY 3.48 trillion in September from CNY 3.58 trillion in August. Market analysts had expected a sizeable decrease in TSF to CNY 3.00 trillion.
Annual growth in M2—the broadest measure of money supply in China—jumped from August’s 10.4% to 10.9% in September. The result was above the 10.4% increase that market analysts had expected.