China’s November Money Supply, New Loans Rise Despite Measures to Prevent Financial Risks

China’s November Money Supply, New Loans Rise Despite Measures to Prevent Financial Risks

Xu Wei

Date: Tue, 12/12/2017 - 11:39 / source:Yicai
China’s November Money Supply, New Loans Rise Despite Measures to Prevent Financial Risks
China’s November Money Supply, New Loans Rise Despite Measures to Prevent Financial Risks

(Yicai Global) Dec. 12 -- China’s broad money supply (M2), newly-extended loans and the increment of aggregated social financing all beat economists’ expectations in November, according to data released by China’s central bank, the People’s Bank of China (PBOC), yesterday. The net new yuan loans rose despite regulators’ drive to reduce financial risks, which led to higher borrowing costs.

The balance of broad money supply (M2) was CNY167 trillion (USD25.2 trillion) at the end of November, up 9.1 percent year-on-year. The growth was 0.3 percentage point higher than that at the end of last month, but 2.3 percentage points lower compared with the same period of last year, the central bank data indicated. The chief economists surveyed by Yicai in November estimated an M2 growth of 8.88 percent year-on-year.

The newly-extended loans added up to CNY1.12 trillion in the month, an increase of CNY328.1 billion year-on-year. The economists’ forecast for the newly-extended loans last month was CNY814,752 million. November also saw an increment of CNY1.6 trillion in the aggregated social financing, a decrease of CNY234.6 billion from the same period of the previous year. The economists’ consensus estimate for the increment of aggregated social financing was at CNY1.25 trillion.

The balance of China’s narrow money supply stood at CNY53.56 trillion at the end of November, up 12.7 percent on a yearly basis. The outstanding balance of aggregated social financing was CNY173.67 trillion at the end of last month, rising 12.5 percent from a year ago.

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Keywords: M2, Social financing, New Loans, Yuan