China’s new RMB loans reached RMB697.3 billion in December, lower than market consensus of RMB880 billion, according to data released by the People’s Bank of China.
The total social financing aggregate number came in higher than expected in December, at RMB1.69 trillion, compared with RMB1.15 trillion in November.
Outstanding total social financing rose to 15.8% year-on-year in December, slightly up from 15.3% in November.
M2, China’s broadest measure of money supply, ticked down to 12.2% in December, versus 12.3% in November, lower than Nomura’s expectation of 12.5%.
The improvement in aggregate financing was mainly due to growth in shadow banking financing, which surged about 26 times to RMB729.3 billion from RMB28.4 billion in November, according to a research report by Nomura.
The divergence between total social financing and M2 growth could be due to tighter restrictions on inter-banking businesses, according to a report by Bank of America Merrill Lynch.