BEIJING, Nov 11 (Reuters) - Chinese banks made 506.1 billion
yuan ($83.10 billion) worth of new yuan loans in October, lower
than a forecast of 600 billion yuan and below the previous
month's 787 billion, central bank data showed on Monday.
Oct M2 money supply +14.3 pct y/y (f'cast +14.3 pct)
Oct new loans 506.1 bln yuan (f'cast 600 bln)
Oct outstanding loan growth 14.2 pct y/y (f'cast +14.3 pct)
Oct social financing aggregate 856.4 billion yuan
SHEN JIANGUANG, CHIEF CHINA ECONOMIST, MIZUHO SECURITIES,
'Both of the new yuan loan and overall social financing
figures declined after rapid increase in September, showing more
signs that the central bank is tightening monetary policy.
'The central bank has already warned in its third-quarter
monetary policy report on the future rising inflation risk and
rising home prices problems. Their tightening stance is becoming
more and more obvious.'
WANG JIN, ANALYST, GUOTAI JUNAN SECURITIES, SHANGHAI
'The M2 and bank lending data is mainly within market
expectations, as strong capital inflows in recent months were
partly driving up base money creation.
'But the growth of social financing aggregate slowed
evidently last month, showing the central bank is tilting
towards a tighter monetary policy compared with previous months,
especially considering the rising inflation pressure in the
'We think the total bank loans for the full year will exceed
9 trillion yuan, with the monthly lending figure at around 600
billion in the coming months of this year.'
For details, see the People's Bank of China website at http://www.pbc.gov.cn.
-- The central bank has set a 13 percent annual target for
M2 growth in 2013, down from last year's actual growth of 13.8
-- China has given no public forecast for new lending this
year, but analysts and state media broadly expect a figure of
between 8.5-9.0 trillion yuan -- expansionary versus the 8.2
trillion of new lending in 2012 -- to help deliver an official
GDP growth target of 7.5 percent in 2013.
(China economics team)
Keywords: CHINA ECONOMY/MONEY
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