China’s credit stays subdued despite PBOC’s lending push

Bloomberg

China’s credit expanded at a slightly slower pace than expected in November after plunging in the previous month, despite efforts by the central bank to boost lending and ease restrictions on property loans.
Aggregate financing, a broad measure of credit, was 2 trillion yuan ($287 billion) last month, the People’s Bank of China (PBOC) said, marginally below the median estimate of 2.1 trillion yuan in a Bloomberg survey of economists.
New loans for all borrowers including non-bank financial institutions rose to 1.2 trillion yuan in the month from an almost five-year low of 615 billion in
October. Growth in the broad M2 measure of money supply accelerated to 12.4% from 11.8%.
The data shows a “rebound in the credit expansion under the policy guidance” to boost liquidity
to the real economy and property sector, but “the magnitude was softer than expected,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank Ltd.
The PBOC has ramped up its monetary easing recently and authorities have loosened restrictions on property financing to help bolster the fragile economy.
The government is moving quickly to relax Covid
restrictions and senior officials have signalled a pro-growth policy stance for next year, suggesting more fiscal and monetary stimulus could be on the cards.