City skyline in China

China Money November 2022

China: Credit data is underwhelming in November

In November, Chinese banks distributed CNY 1210 billion in new yuan loans, up from Octobers 615 billion figure but undershooting market expectations. Meanwhile, the stock of total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—increased 10.0% in the month (October: 10.3% yoy).

Novembers underwhelming figures were the result of soft credit demand, due to pandemic restrictions and the property downturn. This is despite access to credit being eased by the authorities in recent months through cuts to interest rates and extra support to the housing sector.

Near-term credit demand will likely stay weak due to uncertainty generated by the countrys navigation away from its zero-tolerance Covid-19 stance. Regarding policy rates, the Consensus is for only marginal easing going forward. While mild price pressures and the recent yuan strengthening provide some leeway to cut rates, the governments decision to loosen pandemic restrictions reduces the need for further easing.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest