Off the wire
• Alibaba acquires South China Morning Post  • Zambia in power outage after system failure  • 2nd LD Writethru: Alibaba announces acquisition of HK's SCMP Group media assets  • Danish parliament adopts law on carrier liability  • Jaguar Land Rover to invest over 1 bln euros in Slovakia over next 5 year  • Xinhua Insight: E-courts promise online justice for Chinese shoppers  • Platini loses appeal as CAS upholds suspension  • Urgent: Explosion rocks diplomatic district in Afghan capital  • 1st LD: "Refugees" named word of year 2015 in German language  • FLASH: A POWERFUL BLAST HEARD IN DOWNTOWN KABUL  
You are here: 　 Home

2nd LD Writethru: China's new yuan loans expand in November

Xinhua, December 11, 2015 Adjust font size:

China's financial institutions issued 709 billion yuan (110.8 billion U.S. dollars) worth of new loans in November, slightly higher than forecast and well above October's 514 billion yuan, official data showed Friday.

The figure was 235 billion yuan less than last November's reading, the People's Bank of China said on its website.

The central bank said M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 13.7 percent year on year to 137 trillion yuan at the end of November.

The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, grew 15.7 percent year on year to 38.8 trillion yuan.

Total social financing, a measurement of funds that non-financial firms and households get from the financial system, stood at 1.02 trillion yuan, more than double October's count of 477 billion yuan.

Although picking up from October, social financing is still at a historic low level, indicating the real economy does not get enough credit support, said HSBC analyst Qu Hongbin.

Given external demand and deflationary risks at home, loosening monetary policy is a must, Qu said.

The economy grew 6.9 percent in the third quarter from a year earlier, the weakest pace since the global financial crisis, prompting the central bank to cut interest rates for six times in a year.

Besides monetary easing, the government has been expanding fiscal spending to support infrastructure investment to put a floor under the slowing economy.

To bolster growth, the central bank may deliver one more interest rate cut in 2016 and lower the reserve requirement ratio for banks by 600 basis points throughout the year, economists from China International Capital Corp. wrote in a report to clients.

They expected fiscal policy to pull more weight in stabilizing growth, with a more effective reduction in the overall tax burden, a more efficient use of fiscal funds, an acceleration in sovereign and policy bond issuances, as well as a step-up in government-led investment growth for the year ahead. Endi