Chinese banks issued CNY 500 billion in new yuan loans in October 2024, down from CNY 738 billion in the same period last year and falling short of the CNY 700 billion anticipated by markets.
PBoC issues 500 billion in new loans
This was the smallest volume of new loans for October since 2009, reflecting limited demand for investment in the Chinese economy. The data also indicated a tepid response to the latest monetary stimulus efforts by the People’s Bank of China.
Total financing under estimates
Total social financing reached CNY 1,400 billion, below expectations of CNY 1,450 billion. As a result, outstanding loan growth slowed to 7.8%, missing the 8% forecast and setting a record low for growth.
