CICC published a research report saying that China's M2 growth rate rebounded to 9.1 per cent year-on-year in November from 8.8 per cent in October, higher than market expectations of 8.9 per cent, Zhitong Financial APP learned. Fiscal deposits fell 37.8 billion yuan in November, 249.8 billion yuan less than in November last year, dragging down M2 growth by about 0.2 percent. On a seasonally adjusted basis, M2 grew at a flat rate of 1% month-on-month in November.
New yuan loans in November were 1.12 trillion yuan, up from 663.2 billion yuan in October and 794.6 billion yuan in November last year. Due to the seasonal release of fiscal deposits, the increase in new RMB loans and social finance in November is usually higher than that in October.
Medium-and long-term loans to new household departments rose slightly to 417.8 billion yuan in November from 371 billion yuan in October, while new medium-and long-term loans to non-financial enterprises and institutional groups also rose to 427.5 billion yuan in November from 236.6 billion yuan in October, reflecting the solid financing demand of the real economy. In addition, new short-term loans and bill financing rebounded to 261 billion yuan in November from 30 billion yuan in October.
In addition, the scale of social financing increased by 1.6 trillion yuan in November, up from 1.04 trillion yuan in October but lower than 1.83 trillion yuan in November last year. From the perspective of social finance, in the context of the deleveraging policy, off-balance sheet financing continues to transfer to traditional loans. Specifically, new trust loans, entrusted loans, new corporate bonds and undiscounted bank acceptance bills all decreased significantly in November compared with November last year, while the scale of new loans in the increase in social finance (1.14 trillion yuan) and its share of the total new social financing increased significantly compared with the same period last year.
The report believes that financial conditions tightened in November under the influence of a new round of deleveraging marked by the release of a draft of new regulations for consultation on asset management in mid-November. But the pace of tightening so far has been much milder than when it was deleveraged in March-May. Monetary and credit data in November showed that while the growth of off-balance sheet financing continued to be curbed, the pace of lending from traditional channels accelerated.