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1st LD-Writethru: China's new yuan loans rebound in November

Xinhua, December 14, 2016 Adjust font size:

China's new yuan loans rebounded mildly in November due to rising home mortgages and corporate borrowing encouraged by warming signs in the economy.

China's new yuan-denominated lending in November rose to 794.6 billion yuan (115.11 billion U.S. dollars), up from 651.3 billion yuan a month ago but lower than the 1.22 trillion yuan in September, data from the People's Bank of China showed on Wednesday.

The rise was mainly attributable to lending for home purchases, which increased to 569.2 billion yuan, up from 489.1 billion yuan in October, although the government has rolled out measures to cool down overheated home sales since October.

Investment bank CICC said the rise was due to the delayed effect of strong property sales before the policy tightening.

Businesses also borrowed more. Medium- and long-term loans to non-financial enterprises and organizations stood at 201.8 billion yuan, more than double that of October.

A list of key economic data released Tuesday, including industrial output and fixed-asset investment, pointed to stabilization and restructuring progress in the Chinese economy.

The central bank data also showed newly added social financing, a gauge of funds that firms and households get from the financial system, increased by 711.1 billion yuan from the same period a year ago to 1.74 trillion yuan. The figure was only 896.3 billion yuan in October.

The credit boom added to optimism for the immediate growth outlook, while also triggered concerns over the country's deleveraging process, Bloomberg economist Tom Orlik said.

M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 11.4 percent year on year to 153.04 trillion yuan by the end of November, the People's Bank of China said in a statement on its website.

The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, rose 22.7 percent year on year to 47.54 trillion yuan.

Deposits in foreign exchange jumped by 20.4 billion U.S. dollars, the biggest increase since August 2015, due to the weakening Chinese currency. Endi