Total social financing (TSF), a wide-ranging gauge of the economy’s liquidity and borrowing levels, bounced back from an all-time low in October as efforts by Beijing to stimulate lending seem to have taken effect, Caixin reports.
TSF grew by Rmb 1.52 trillion ($221.15 billion) last month, central bank data showed, double the October increase.
Although October tends to be a weak month for lending due to bouts of inactivity from the Golden Week national holiday, this year was particularly slow. Firms struggled to find adequate funds due to Beijing’s deleveraging campaign and the onset of a wider economic slowdown.
Viewed on a yearly basis, however, the numbers for November are less impressive. TSF was up just Rmb 393.9 billion, or 9.9%, compared with a year ago – a record low increase.
The rebound also appeared largely driven by household loans and credit card bills, boosted by consumption events such as the Singles’ Day extravaganza. Medium and long-term bank loans to businesses were down compared to a year ago, despite rising significantly on a monthly basis.