China’s Growth in Total Social Financing and Renminbi Loans to Real Economy Both Post YoY Contractions in November

The latest round of official data from the Chinese central bank points to contraction in new total social financing (TSF) and renminbi lending in the month of November in year-on-year (YoY) terms.

Preliminary data from the People’s Bank of China (PBOC) puts growth in TSF in November at 1.99 trillion yuan, 610.9 billion yuan less than the print for the same period last year.

New renminbi loans to the real economy totalled 1.14 trillion yuan, for a decline of 157.3 billion yuan compared to the same period last year, while foreign currency loans to the real economy contracted by 64.8 billion yuan in YoY terms, 51.4 billion yuan more than the decline for November 2021.

Other key forms of credit extension also declined, with entrusted loans falling 8.8 billion yuan YoY in November, and trust loans dropping 36.5 billion yuan YoY.

Net enterprise bond financing for November was 59.6 billion yuan for a contraction of 341 billion yuan compared to the same period last year, while net government bond financing was 652 billion yuan, for a contraction of 163.8 billion yuan. Non-Financial enterprise domestic stock financing was 78.8 billion yuan, for a YoY contraction of 50.6 billion yuan.

Growth in TSF for the period from January to November was 30.49 trillion yuan, 1.51 trillion yuan ahead of the same period last year.

As of the end of November outstanding TSF was 343.19 trillion yuan, for YoY growth of 10%. The outstanding balance of renminbi loans to the real economy was 210.99 trillion yuan, for YoY growth 0f 10.8%, while the balance of foreign currency loans to the real economy was 2.07 trillion yuan, for a YoY decline of 9.9%.

As of the end of November the outstanding balance of renminbi loans to the real economy accounted for 61.5% of outstanding TSF for the same period, for an increase of 0.4 percentage points compared to the same period last year.

The M2 money supply balance was 264.7 trillion yuan as of the end of November, for YoY growth of 12.4% and acceleration of 0.6 percentage points compared to the end of the previous month, as well as 3.9 percentage points compared to the same period last year.

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