(Yicai) Oct. 15 -- China’s new aggregate social financing tumbled 8.6 percent in the first three quarters from a year earlier to CNY27.5 trillion (USD4.1 trillion), but the share of financing through bonds and stocks rose to nearly 50 percent, highlighting the growing diversity of funding channels.

Net corporate bond financing surged 75 percent in the nine months ended Sept. 30 from a year earlier to CNY2.8 trillion, while net government bond financing tumbled 10.4 percent to CNY10.3 trillion, according to data released by the People’s Bank of China yesterday. Equity financing by non-financial companies, though, soared 69.1 percent to CNY535.9 billion.

New yuan loans extended to the real economy slumped 20.7 percent in the first three quarters from a year earlier to CNY11.5 trillion (USD1.7 trillion), according to the central bank.

Based on these figures, bonds and equities accounted for 49.5 percent of the increase in aggregate social financing in the first three quarters, about 7 percentage points more than the share of loans. This suggests that China’s economy is becoming less dependent on credit, while direct financing is playing a more prominent role in supporting the economy.

Financial resources are increasingly being directed toward five key areas, namely technology, green development, inclusive finance, elderly care and the digital economy, the PBOC said. Since the start of the year, new loans in these five sectors have maintained double-digit growth, accounting for more than 70 percent of all new lending. Growth in technology, green and inclusive finance loans have continued to outpace that of other loan categories.

Outstanding aggregate social financing jumped 7.1 percent at the end of September from a year earlier to CNY468.2 trillion (USD70 trillion), according to the central bank. Outstanding yuan loans extended to the real economy climbed 4.8 percent to CNY279.9 trillion (USD41.8 trillion), while broad money supply, or M2, increased by 7.2 percent to CNY359.6 trillion.

Lending rates also remain low. In September, the weighted average interest rate on newly issued corporate loans was slightly below 3 percent, about 0.2 percentage point lower than a year earlier, while the weighted average interest rate on newly issued personal mortgage loans was around 3.1 percent, roughly unchanged from the same period last year, the PBOC added.

Editors: Dou Shicong, Kim Taylor