China: New yuan loans recover strongly in November
In November, Chinese banks distributed CNY 1.39 trillion (USD 197 billion) in new yuan loans, well above both the CNY 661 billion recorded in October and the CNY 1.20 trillion that market analysts had expected. In the 12 months up to November, new yuan loans totaled CNY 16.8 trillion (12 months to October: CNY 16.6 trillion).
Meanwhile, annual growth in M2—the broadest measure of money supply in China—declined from October’s 8.4% to 8.2% in November. The print undershot the 8.4% increase that market analysts had expected.
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—surged from CNY 619 billion in October to CNY 1.75 trillion in November. Market analysts had expected a softer increase in TSF to CNY 1.5 trillion.