New yuan bank loans fell by more than 50% in October

Net new yuan loans by Chinese banks plunged to RMB513.6 billion (US$80.69 billion) in October from RMB1.05 trillion in September as total social financing – a measurement of net credit in the economy – fell to RMB476.7 billion in October from RMB1.3 trillion in September, South China Morning Post reported, citing the People’s Bank of China. M2, a broad measure of the money supply, rose 13.5% at the end of October year-over-year, up slightly from 13.1% growth in September. The central bank said in its third-quarter monetary policy report last week that it would not expand the money supply excessively to prevent a market clearing process.