Chart of the Day: New Credit Grew Faster Than Expected in December
China’s total social financing (TSF), a broad measure of new credit in the economy, amounted to 1.59 trillion yuan ($240 billion) in December, putting it up 3.3 billion yuan year-on-year and beating analysts’ expectations, data from the People’s Bank of China showed on Tuesday.
TSF includes conventional bank lending and other forms of financing such as bond and equity issuances, trust loans and entrusted loans.
Analysts polled by Bloomberg and Reuters estimated that December’s TSF would amount to 1.3 trillion yuan and 1.2 trillion yuan, respectively, down from 1.52 trillion yuan in November.
New bank loans to the real economy and a net gain in corporate bonds were the main factors that drove December’s TSF to beat analysts’ expectations, wrote Wang Tao, chief China economist at UBS Investment Bank, in a note (link in Chinese).
As of the end of December, the country’s outstanding TSF stood at 200.7 trillion yuan, witnessing a slower year-on-year growth rate of 9.8%, down 3.6 percentage points from the previous year, according to data from the central bank.
Reductions in off-balance-sheet lending and sluggish demand for financing from debt-ridden state-owned enterprises and local government financing vehicles are the main reasons behind the slower credit growth in 2018, said Ruan Jianhong, head of the central bank’s statistics department, at a media briefing. As China pushes forward its deleveraging campaign, outstanding off-balance-sheet financing saw a sharp drop of 2.93 trillion yuan in 2018.
Total social financing includes off-balance-sheet financing, and can provide hints about activity in China’s “shadow banking” sector, which falls outside the conventional banking system and provides financing to many small and midsize enterprises.
China’s M2, a broad measure of money in circulation, increased 8.1% year-on-year in December, up from 8% in November, according data from the central bank.
For the year 2019, growth in TSF and M2 should roughly match growth in nominal gross domestic product, so as to provide sufficient financial support for the real economy, said Zhu Hexin, a central bank deputy governor, at a press conference.
Contact reporter Charlotte Yang (email@example.com)
Nov 19 17:23
Nov 19 16:25
Nov 19 15:34
Nov 19 15:00
Nov 19 14:44
Nov 19 13:42
Nov 19 10:49
Nov 19 02:18
Nov 18 18:34
Nov 18 18:06
Nov 18 15:37
Nov 18 14:03
Nov 18 14:12
- 1Two Persons Diagnosed With Pneumonic Plague in Beijing
- 2In Depth: Southeast Asia Becomes Region’s Next Tech Battleground
- 3U.S. to Extend Huawei Reprieve by Allowing It to Continue Trade With U.S. Clients: Report
- 4Beijing Plague Patients Were Medical Transfers, Further Cases in Capital Unlikely: Officials
- 5Top Bank Regulators Move to Defuse Jitters After Two Bank Runs
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas