(Yicai Global) Oct. 12 -- China's newly added social financing and yuan loans greatly surpassed market expectations in September, according to the latest official data. Analysts believe this proves the efficacy of China's support policies to stabilize the economy.

Under the continuous promotion and acceleration in implementing policies to stabilize economic growth, the demand for credit in the enterprise and residential sectors has rebounded, with loose credit policies further speeding up, said Wen Bin, chief economist at China Minsheng Bank.

New yuan loans reached CNY2.47 trillion (USD344.6 billion) in September, up CNY810.8 billion (USD113.1 billion) from a year earlier, data from the People's Bank of China showed yesterday. New social financing, or the amount of money the financial system provided to companies and households, gained CNY624.5 billion to CNY3.53 trillion. M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 12.1 percent.

Chief economists polled by Yicai Global earlier predicted new yuan loans to be CNY1.35 trillion, social financing CNY2.7 trillion, and M2 to have grown 12.07 percent in September from a year earlier.

China's credit is expected to remain strong, said Zhou Maohua, a macro researcher at the financial market department of Everbright Bank. As the domestic economic practices are restored, the policies to stabilize growth are expected to have better effects and cut financing costs of the real economy, Zhou added, noting that the financial targeted support tools are likely to alleviate the financing difficulties and promote the recovery of the credit demand in the real economy.

The constant improvement of the credit structure shows that the demand for the real economy is recovering, said Wang Yunjin, a senior researcher at Zhixin Investment Research Institute. A series of policies for stabilizing growth and successive measures have achieved good results, and the momentum and confidence in the economic recovery and development of the next stage can be enhanced, he added.

For the fourth quarter, analysts believe that the progress of the economic recovery will be closer to normal growth. With the continuous introduction of measures to stabilize the property market, the credit will keep increasing in October. Meanwhile, loose credit policies will be further promoted, laying a solid foundation for promoting the recovery of the macroeconomic operation as soon as possible.

China recently released CNY600 billion worth of policy-oriented development financial tools. A local balance limit for special bongs of more than CNY500 billion will be also issued before the end of October, supporting the supply of major infrastructure funds.

Editor: Futura Costaglione