Chinese lending misses expectations in November

Bank lending and expansion in credit-supply in China were lower than forecasted in November, a further sign that liquidity issues may arise at the end of this year, The Wall Street Journal reported. Chinese lenders made US$83 billion (RMB522.9) of new renminbi loans in November, increasing from US$80.87 billion the month before, People’s Bank of China figures showed on Tuesday. The figure falls short of a median prediction of US$88.05 billion by economists polled by the newspaper. M2 – a wide-ranging indicator of money supply – increased 13.9% at the end of November, a fall from 14.1% in October and under economists’ forecasts of a 14.2% increase. Chinese banks tend to struggle to meet regulator’s capital reserve ratio at the end of the year, making them stricter about providing credit.