China's Yuan Loan Growth Reached Record Last Month
Tang Shihua
DATE:  Feb 15 2019
/ SOURCE:  yicai

(Yicai Global) Feb. 15 -- The growth in China's yuan-denominated loans hit a record for the month of January, while new non-governmental funding, or social finance, also soared to a historic monthly high, data China's central bank released today shows.
 

New yuan loans reached CNY3.23 trillion (USD478 billion) last month, exceeding last January's CNY2.90 trillion. The growth in private financing reached CNY4.64 trillion, likewise higher than last January's just over CNY 3 trillion.
 

The Chinese government invented social finance in 2011 as a means of better measuring liquidity compared to using money supply alone. It assisted Chinese leaders in supervising fundraising activities as the country's financial system shifted from lending based on state-controlled policy.
 

The outstanding broad money supply -- designated M2 -- reached CNY186.6 trillion at the end of last month, a 8.4 percent rise over last year, the data also shows.
 

A survey of 22 chief economists from major domestic financial institutions Yicai Research Institute conducted show that their average prediction for new loans in January was CNY2.99 trillion, and the average projection for newly-added social finance for the month was CNY3.37 trillion.
 

Their average prediction for M2 growth in January was 8.21 percent.


Editor: Ben Armour

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Keywords:   Yuan-Denominated Loans,Social Financing,M2 Growth,Economic Data,Central Bank