China’s new RMB loans were RMB548.3 billion in October, 36% lower than that of the prior month, failing to meet market expectations, according to data released by the People’s Bank of China.
The total social financing aggregate number in October also came in lower than expected at RMB662.7 billion, representing a 23.3% decrease over a year earlier.
M2, China’s broadest measure of money supply, moderated to 12.6%, versus 12.9% by the end of the third quarter.
Notably, China’s central bank stated that it has changed the calculation method since September, in order to minimize the impact of seasonal factors.
Although the Chinese central bank’s monetary easing will improve the market liquidity conditions, the tightening risk control of commercial banks and sluggish domestic demand will continue to add pressure on the over-capacity sectors, especially the privately owned enterprises, says a report by the Australia and New Zealand Banking Group Limited (ANZ).