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China: M2 and new yuan loans rise in September

Staff Writer | October 18, 2017
Chinese banks extended CNY 1.27 trillion ($193 billion) in new yuan loans in September, above August’s CNY 1.09 trillion.
Bank of China
Asia   FocusEconomics
The print overshot the CNY 1.10 trillion markets had expected. In the 12 months up to September, new yuan loans totaled CNY 13.6 trillion (August: CNY 13.6 trillion).

Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—rose from August’s CNY 1.48 trillion to CNY 1.82 trillion in September.

Meanwhile, annual growth in M2—the broadest measure of money supply in China—rose from August’s all-time low of 8.9% to 9.2% in September. The reading overshot the 8.9% that market analysts had expected.

The government set an M2 growth target of 12.0% for this year.

FocusEconomics Consensus Forecast participants expect M2 to expand 9.8% in 2017. In 2018, the panel sees M2 growth of 9.6%, which is down 0.5 percentage points from last month’s forecast.