China's new yuan loans expand in September, M2 growth accelerates

Xinhua
Chinese banks extended 1.27 trillion yuan (about US$192.8 billion) of new loans in September, beating market forecasts.
Xinhua
Imaginechina

Chinese banks extended 1.27 trillion yuan (about US$192.8 billion) of new loans in September, beating market forecasts, while broad money supply growth also accelerated, central bank data showed Saturday.

New yuan-denominated loans in September expanded from 1.09 trillion yuan in August and exceeded the market expectation of 1.2 trillion yuan.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, at the end of September rose 9.2 percent from a year earlier, accelerating from 8.9 percent recorded a month ago, the People's Bank of China said in a statement on its website.

It marked the first time M2 growth has picked up in eight months, but the rate was still 2.3 percentage points lower from a year earlier.

The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, rose 14 percent year on year, on par with the rate at the end of August.

In the first three quarters, Chinese banks extended 11.16 trillion yuan of new loans, 998 billion yuan more than the same period last year.

New loans made to non-financial enterprises and government institutions hit 5.73 trillion yuan in the first nine months, indicating credit demand from the real economy.

Medium to long-term loans made to home buyers, mainly consisting of personal housing mortgages, added 4.2 trillion yuan during the period.

By the end of September, outstanding yuan loans grew 13.1 percent from a year earlier to 117.76 trillion yuan.

The newly added total social financing, a broader measure of financing scale, reached 1.82 trillion yuan in September, up from 1.48 trillion yuan in August.


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