New RMB lending in China in the month of October this year totaled RMB 661.3 billion ($94.5 billion), much lower than the RMB 1.69 trillion recorded in September, and decreasing by RMB 35.7 billion ($5.1 billion) year on year, as announced by the People’s Bank of China (PBOC) on November 11. The October figure was lower than the expected RMB 700-800 billion for the month.
M2 money supply in China in October came to RMB 194.56 trillion ($27.8 trillion), up 8.4 percent year on year, while remaining stable compared to the end of September this year.
Meanwhile, as the end of October, total social financing in China, a broad measure of credit specific to China, was at RMB 219.6 trillion ($31.4 trillion), up 10.7 percent year on year, while the pace of growth was 10.8 percent in September.
Ren Zeping, chief economist of Evergrande Research Institute, stated that China has come under heavy downward pressure, for instance, enterprises’ willingness to invest and financing demand are insufficient, indicating that policies to stimulate economic development are still needed in the future. In the remaining two months of the year, total social financing will likely rebound as local government bonds for 2020 will be issued in advance.