UPDATE 1-China Sept new bank loans quicken from August, but below f’cast

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* September’s new loans 1.66 trln yuan versus f’cast 1.85 trln yuan

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* September M2 Money Supply +8.3% y/y, versus f’cast +8.1%

* September TSF 2.9 trln yuan, versus f’cast 3.105 trln yuan

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BEIJING, Oct 13 (Businesshala) – New bank loans in China accelerated in September from the previous month, but fell short of expectations, as the central bank tightens economic recovery, even as it monitors debt and bubble risks. Is.

The world’s second largest economy has bounced back from the depths of the COVID-19 pandemic but has shown signs of losing momentum, with power outages, supply constraints and a crackdown in sectors ranging from technology to assets.

Chinese banks extended 1.66 trillion yuan ($257.69 billion) in new yuan loans in September, up from 1.22 trillion yuan in August, People’s Bank of China (PBOC) data showed on Wednesday.

Analysts polled by Businesshala predicted new yuan loans would rise to 1.85 trillion yuan in September. New loans were down from 1.9 trillion yuan a year earlier.

Central bank data showed household debt, mostly mortgages, rose to 788.6 billion yuan in September from 575.5 billion yuan in August, while corporate debt rose to 980.3 billion yuan from 696.3 billion yuan.

China will stick to normal monetary policy for as long as possible and its potential economic growth is still expected to be in the 5% to 6% range, PBOC Governor Yi Gang wrote in an article in late September.

Central Bank Vice Governor Pan Gongsheng said last month that China would maintain prudent monetary policy and would not resort to stimulus such as floods.

In July, the PBOC cut the reserve requirement ratio (RRR) for banks, releasing about 1 trillion yuan in long-term liquidity. Analysts expect another RRR cut this year.

The broad M2 money supply grew 8.3% from a year earlier, central bank data showed, up from an 8.1% forecast in a Businesshala poll. M2 grew 8.2% in August from a year earlier.

Outstanding yuan loans rose 11.9% from a year earlier, the slowest pace since May 2002. The analyst had forecast a growth of 12.1% in August, matching the pace.

Growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, slowed to 10.0% in September from a year earlier – the weakest pace since at least 2017 – and 10.3 in August % From.

TSF includes off-balance sheet forms of financing that exist outside the traditional bank lending system, such as initial public offerings, loans from trust companies, and bond sales.

In September, TSF fell to 2.9 trillion yuan from 2.96 trillion yuan in August. Analysts polled by Businesshala had expected a September TSF of 3.105 trillion yuan.

($1 = 6.4419 Chinese Yuan)

Reporting by Judy Hua and Kevin Yao; Editing by Jacqueline Wong


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