Lending Surge in January Ahead of February Spring Festival

Lending was strong in January ahead of a late February Spring Festival.
China January new yuan loans surge to a 5-1/2-year high
China's economy extended 1.47 trillion yuan ($235.6 billion) in new loans in January, beating analysts' expectations in a lending surge not seen since mid-2009.

Economists polled by Reuters had predicted new local-currency loans would rebound to 1.35 trillion yuan in January, compared with 697 billion in December.

The central bank also said on Friday that broad M2 money supply (M2) grew 10.8 percent year-on-year, missing expectations of 12.1 percent and 12.2 percent in the previous month.
The increase in M2 over December was over 1 percent though, so it follows December's acceleration.

Total social financing was also strong, although the year on year growth was negative. As with the lending, the early surge doesn't tells us too much about what's to come in 2015. Bank lending was roughly 70% of total social financing.

1 comment:

  1. Is there a way to find out how many of these loans were for housing purchases???