China Money August 2020


China: New loans increase in August

September 11, 2020

In August, Chinese banks distributed CNY 1.28 trillion (USD 187 billion) in new yuan loans. The reading came in above both the CNY 993 billion recorded in July and the CNY 1.22 trillion that market analysts had expected. In the 12 months up to August, new yuan loans totaled CNY 19.2 trillion (12 months to July: 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—rose from CNY 1.69 trillion in July to CNY 3.58 trillion in August. Market analysts had expected a softer increase in TSF to CNY 2.59 trillion.

Annual growth in M2—the broadest measure of money supply in China—decreased from July’s 10.7% to 10.4% in August. The result was below the 10.7% increase that market analysts had expected.

The slowdown in M2 growth reflected more targeted monetary policy in order to avoid stock market bubbles.

FocusEconomics Consensus Forecast participants expect M2 to expand 10.9% in 2020, which is down 1.2 percentage points from last month’s forecast. In 2021, the panel sees M2 growth of 8.8%.

Author: Ricard Torné, Head of Data Analysis

Sample Report

Looking for forecasts related to Money in China? Download a sample report now.


China Money Chart

China Money August 20 20

Note: New yuan loans in CNY billion and year-on-year variation of M2.
Source: People’s Bank of China (PBOC) and FocusEconomics calculations.

China Economic News

More news

Search form