Wang Tao: Expect China’s Credit Growth to Pick Up Further

China’s outstanding total social financing (TSF) grew 9% year-on-year at the end of August, faster than 8.9% a month earlier, thanks to more bank loans and bond issuance, as well as a low base for comparison.

We expect the TSF growth to pick up further.

Loans improved, but mid- and long-term ones weakened

China’s new yuan loans recovered to 1.36 trillion yuan ($189 billion) last month after a surprisingly weak July, slightly better than the average market expectation of 1.25 trillion yuan in a Bloomberg survey.