China: Growth in M2 and new yuan loans moderates in October
November 14, 2017
Chinese banks extended CNY 663 billion (USD 100 billion) in new yuan loans in October, well below September’s CNY 1.27 trillion. The print undershot the CNY 780 billion markets had expected and represented the lowest mark in one year. In the 12 months up to October, new yuan loans totaled CNY 13.7 trillion (September: CNY 13.6 trillion).
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—fell from September’s CNY 1.82 trillion to CNY 1.04 trillion in October.
Meanwhile, annual growth in M2—the broadest measure of money supply in China—declined from September’s 9.2% to an all-time low of 8.8% in October. The reading overshot the 9.2% that market analysts had expected.