China September new bank loans jump more than expected on stimulus, seasonal boost
SPY•Chinese banks issued 1.08 trillion yuan in new loans in September, above analysts’ 975 billion yuan forecast and sharply higher than August’s 60 billion yuan. Outstanding yuan loan growth fell to a record low of 4.8% year over year.
1. Lending rebounds in September
Chinese banks extended 1.08 trillion yuan in new loans in September, up sharply from 60 billion yuan in August and above analysts’ 975 billion yuan forecast. Household loans were flat after contracting in August, while corporate loans rose to 1.29 trillion yuan from 260 billion yuan.
2. Credit demand remains weak
The pickup may reflect new policy financial instruments supporting project investment and corporate funding, but overall credit growth remained weak. Outstanding yuan loans grew 4.8% year over year, a record low, and broad M2 money supply growth slowed to 7.2%, an 18-month low. The figures followed late-September measures including targeted rate cuts and mortgage subsidies; China was due to release third-quarter GDP data on October 19.
