China's New Yuan Loans Surge in September, Central Bank Stimulus Boosts Economy | Expert Analysis by Kevin Yao and Ella Cao
In a recent Multibagger poll, economists predict that China's new yuan loans will skyrocket in September, thanks to the central bank's aggressive stimulus measures aimed at meeting this year's growth target. Banks are expected to issue 1.87 trillion yuan in net new yuan loans, more than double the amount from August.
The central bank's stimulus package, unveiled in late September, includes monetary measures and support for the property market. Chinese leaders have also pledged to increase fiscal spending to boost growth to around 5%. Despite these efforts, outstanding yuan loans are forecasted to rise by 8.3% from a year earlier, down slightly from August.
If the government accelerates bond issuance to revive the economy, it could help increase total social financing (TSF), a key measure of credit and liquidity. The finance ministry is set to announce plans for fiscal stimulus at a news conference, signaling more aggressive policies to revive growth.
Overall, the data suggests that China is taking significant steps to support its economy and meet its growth targets. For investors and individuals, this could mean improved market conditions and potential opportunities for growth in the future. Stay tuned for the official data release between October 10-15.
($1 = 7.0633 renminbi)