China: Policy easing boosts credit data in September
In September, Chinese banks distributed CNY 1.38 trillion (USD 199 billion) in new yuan loans, up from the CNY 1.28 trillion distributed in August and slightly above market expectations of CNY 1.35 trillion. In the 12 months up to September, new yuan loans totaled CNY 15.5 trillion (12 months up to August: CNY 15.4 trillion).
Meanwhile, annual growth in M2—the broadest measure of money supply in China—inched up to 8.3% in September from August’s 8.2%. The reading was in line with market expectations.
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 1.52 trillion in August to CNY 1.55 trillion in September.
The improvement in credit data mostly reflects recent easing measures adopted by Chinese authorities.