China’s recent monetary policy easing has shown some effect, but not enough to significantly lift credit growth, reported Caixin.
China’s total social financing (TSF), a broad measure of credit and liquidity in the economy, grew by a net RMB 2.27 trillion ($320 billion) in September, higher than the net increase of RMB 1.98 trillion the month before and the year-ago growth of RMB 2.21 trillion, data from the People’s Bank of China (PBoC) showed Tuesday.
Last month, banks extended RMB 1.69 trillion in net new yuan loans, up 40% from August, recording the biggest September growth ever, according to central bank data. Analysts polled by Caixin had expected RMB 1.4 trillion of new loans.
The increase in corporate medium- and long-term loans was in part related to debt swaps, indicating that real demand remained sluggish, said analysts at China International Capital Corp.