
Bloomberg
China’s broadest gauge of new credit exceeded projections, signaling that the funding taps remain open even as the government pushes to curb excessive borrowing. Aggregate financing stood at$276 billion in September, the People’s Bank of China said, compared with an estimated 1.57 trillion yuan in a Bloomberg survey and 1.48 trillion yuan the prior month.
New yuan loans stood at 1.27 trillion yuan, versus a projected 1.2 trillion yuan The broad M2 money supply increased 9.2 percent, exceeding estimates and picking up from the prior record low.
Policy makers have been clamping down on shadow banking while also working to keep corporate borrowing intact to avoid impeding growth. The central bank said t will reduce the amount of cash some banks must hold as reserves from next year, with the size of the cut linked to lending to parts of the economy where credit is scarce.
“Momentum continues to be very strong,†said Kenneth Courtis, chairman of Starfort Investment Holdings.
“Loan demand of the private sector has finally turned up in recent months.â€
“This means that there is little hope of further policy easing in the fourth quarter as the monetary policy is very accommodative,†said Zhou Hao,
an economist at Commerzbank AG
in Singapore. “Household short-term loans have increased too rapidly, with some funds being invested in stock and property markets,| said Wen Bin, a researcher at China Minsheng Banking Corp. in Beijing.