The Financial Times Confidential Research China Underground Lending Index dropped in November as lenders reported slower volume growth, the Financial Times reports. The headline index of 62.9 was 6.5 points lower than last month but 0.6 points higher year on year. Real estate was again cited as the greatest source of credit risk, followed by the manufacturing sector. Manufacturing replaced the consumer sector as the biggest source of credit demand in November. The FTCR China Lending Volume Index fell 12.4 points to 64.1, above the average 62.1 for the previous 12 months.
The FTCR Lending Rate Index suggested interest rates rose at a slightly faster pace than in October. The index rose 0.6 points to 57.8, a 3.8 point gain year on year. Among respondents, 66.7 per cent said rates remained the same. The Interest Rate Outlook Index rose 7.1 points to 54.5 in November, the highest level for two years. Among respondents, a record 90.9% expected rates to stay the same, while no respondents expected rates to fall.