China’s broadest measure of new credit rose to a three-month high in September, suggesting the central bank’s targeted measures to boost liquidity have helped spur lending.
Aggregate financing was 1.05 trillion yuan ($171 billion), the People’s Bank of China said today in Beijing, compared with the 1.15 trillion yuan median estimate in a Bloomberg survey of economists. New local-currency loans were 857.2 billion yuan, and M2 (CNMS2YOY) money supply grew 12.9 percent from a year earlier. Foreign reserves were $3.89 trillion at Sept. 30.
While holding off from broad cuts to interest rates or the overall level banks need to keep as reserves, the central bank has sought to bolster lending to targeted areas and reportedly injected 500 billion yuan into the nation’s largest lenders last month. Weighed by a property slump, China’s economy probably expanded 7.2 percent in the third quarter, the slowest in more than five years, based on the median estimate of analysts surveyed by Bloomberg.