Data from the People's Bank of China issued Tuesday afternoon:
Banks in China extended 2.47 tln yuan (circa USD344.58 bn) in new yuan loans in September,
- from 1.25 tln yuan in August
- estimates centred on +1.8 tln
September total social financing (TSF) 3.53 tln yuan
- expected 2.73 tln yuan
- 2.43 tln in August
Reuters reported an analyst response:
- "Expanded credit for infrastructure, manufacturing, real estate and other sectors will give a strong support for growth of credit and total social financing in the fourth quarter, helping to keep the economic operation within a reasonable range," said Wen Bin, chief economist at Minsheng Bank.
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Some of the increase in loans will, as always, go into the property market. This is often an unwanted side effect but given the debt implosion in the sector its probably going to be welcome.
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Meanwhile, from this morning's China Securities Journal:
- says the economy will extend its recovery in Q4
