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China September new bank loans jump to 1.08 trillion yuan, beating expectations
PBOC data released Oct 14 show Chinese banks extended 1.08 trillion yuan in new loans in September, well above the 975 billion yuan expected and August's 60 billion; outstanding loan growth hit a record low of 4.8%.
Why it matters
Chinese banks extended 1.08 trillion yuan (about $161.4 billion) in new loans in September, far above the 975 billion yuan analysts polled by Reuters had expected and a sharp rebound from August's weak 60 billion yuan. It is the first sign that Beijing's stepped-up targeted monetary easing in late September is gaining traction — though outstanding loan growth of just 4.8% year-on-year, a record low, points to still-sluggish demand from households and businesses.
Full report
The People's Bank of China released January-September financial data on Oct 14. Reuters calculated the September figure from the January-September total minus the January-August total, as the central bank does not publish monthly breakdowns. September's 1.08 trillion yuan compares with 1.29 trillion yuan a year earlier. Banks typically accelerate lending toward quarter-end to meet internal targets.
Household loans, including mortgages, were flat in September after contracting by 202.9 billion yuan in August, while corporate loans surged to 1.29 trillion yuan from 260 billion yuan in August. New loans in the first nine months totalled 11.52 trillion yuan, down from 14.75 trillion yuan in the same period last year.
In late September the government unveiled targeted rate cuts and mortgage subsidies. Zhou Hao, chief economist at Guotai Junan International, said the improvement likely reflects the rollout of new policy financial instruments in September, supporting project investment and corporate funding demand. Fitch Ratings said the package should modestly improve credit transmission but is unlikely to materially lift broader credit demand or alter the property sector's weak trajectory. Investors now await third-quarter GDP data.
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