China’s M2 Up 7.2% and Social Financing Stock Up 7.1% at End-September; New Loans 11.5 Trillion Yuan in Jan–Sep

China’s broad money supply (M2) stood at 359.63 trillion yuan at the end of September, up 7.2% from a year earlier, according to third-quarter financial statistics released by the People’s Bank of China on 14 October. The stock of total social financing was 468.17 trillion yuan, up 7.1%. Social financing added and new loans in January–September were both below the same period last year.

By FOCUS BUSINESS editorial staff

End-September stocks: M2 +7.2%, social financing +7.1%

The PBOC reported M2 of 359.63 trillion yuan at end-September, up 7.2% year on year, and a social financing stock of 468.17 trillion yuan, up 7.1%. Outstanding yuan loans came to 283.44 trillion yuan (+4.8%), of which loans to the real economy were 279.9 trillion yuan (+4.8%).

January–September flows: below a year earlier

Total social financing added 27.46 trillion yuan in the first nine months, 2.63 trillion yuan less than a year earlier. Yuan loans to the real economy rose by about 11.5 trillion yuan over the period, 3.04 trillion yuan less than in the same period last year. Stocks keep growing, but the amount of new funding supplied this year is smaller than a year ago.

Business Checkpoints

Growth in outstanding loans (4.8%) is lower than growth in M2 (7.2%) and in the social financing stock (7.1%). Korean companies in China that plan to roll over or raise working-capital loans may want to confirm limits, interest rates and maturities with their banks early.

These figures are economy-wide aggregates and do not describe the borrowing conditions of an individual company. Conditions differ widely by bank, industry and collateral, so the lending criteria applied by your own bank are what matter.

※ This article is based on figures released by the People’s Bank of China and on Chinese media reports.