During the afternoon in China on Tuesday the social financing data was released
For China watchers (hello AUD traders!) the data is a pretty big deal, its been a loosening of the credit taps that has been a substantial contributor to th stabilisation in the Chinese economy ins Q2 and (as expected) Q3
Mike had the data up on screen as it hit: Chinese lending data now released
I just wanted to recap ...
September new yuan loans (RMB), 1220bn
- expected 1000bn, prior was 948.7bn
Aggregate financing RMB for September, 1720bn
- expected 1390bn, prior was 1469.7bn
Big, big beats for both of these
And ...
- Money supply M0 for September 6.6% y/y: expected 7.3%, prior was 7.4%
- Money supply M1 for September 24.7% y/y: expected 24.5%, prior was 25.3%
- Money supply M2 for September 11.5% y/y: expected 11.6%, prior was 11.4%
In a nutshell, credit continues to grow strongly which will help fuel economic growth, but of course also property price growth. The PBOC has the pedal to the metal here, its not likely they will sustain credit increase at this pace ahead.