According to the report from the People's Bank of China (PBoC), in September, Chinese banks provided new loans in yuan in the amount of 1.590 trillion yuan. Therefore, credit growth accelerated sharply compared to August (0.900 trillion yuan), as the central bank ramps up stimulus to boost the economy. Economists had expected lending to grow by 1.865 trillion yuan.
Meanwhile, total social financing grew by 3.760 trillion yuan, compared with an increase of 3.03 trillion yuan in August. Consensus estimates suggested an increase of 3.730 trillion yuan
The PBoC said that in September, M2, the widest measure of money supply, rose by 6.8% per year, accelerating compared to August (+6.3%). Economists had expected growth of 6.4%. Outstanding loans in yuan rose by 8.1% per year after an increase of 8.5% per year in August. Consensus estimates suggested an increase of 8.3% per annum.
In an attempt to boost the economy, the Central Bank in late September unveiled its most aggressive monetary stimulus package since the COVID-19 pandemic, combined with extensive support for the real estate market, including lower mortgage rates. The central bank has promised further monetary easing, with Chinese leaders pledged to deploy "necessary fiscal spending" to meet this year's growth target of around 5%. The National Bureau of Statistics is scheduled to release third-quarter GDP on Friday, along with retail sales, industrial production and fixed asset investment for September.