China Credit Growth Steady As Stimulus Offsets Weak Lending

  • New aggregate financing rose 4.1 trillion yuan in September
  • Mortgage lending to households increased after rule relaxation

Workers in front of residential buildings under construction in Heyuan, Guangdong province, China.

Source: Bloomberg

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China’s credit growth held steady in September, with rapid government bond issuance to fund infrastructure projects and stronger mortgage lending offsetting a decline in the value of new bank loans.

Aggregate financing, a broad measure of the stock of credit in China’s economy, increased by 9% in September from a year earlier, the People’s Bank of China said Friday — the same rate as the previous month. There was 4.1 trillion yuan ($564 billion) in credit extended in September, above the median estimate of 3.7 trillion yuan in a survey of economists and the fastest increase for September in comparable data back to 2017.