China’s new RMB loans declined to RMB810 billion in August, down from July’s RMB1.48 trillion.
Total social financing aggregate came in at RMB1.08 trillion in the month, up from RMB718.8 billion recorded in July.
China’s M2 growth kept steady at a 13.3% expansion in August.
"August monetary data were broadly in line with expectations. We would pay more attention to total social financing aggregate than M2 data currently since the latter is distorted by the liquidity supplied to support the equity market," says a research report by Goldman Sachs Gao Hua.
"While sequential TSF growth was not quite as strong as it was in July, it was nevertheless very robust. This reflected the loosening bias of monetary policy," the report says.
