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Wednesday, December 14, 2016, 18:10

China bank lending on track for record

By Agencies

BEIJING - Chinese banks extended 794.6 billion yuan (US$115.10 billion) in new yuan loans in November and look set to extend a record amount of credit this year.

Lending continues to be driven heavily by robust mortgage growth

Analysts polled by Reuters had expected new lending to have risen to 720 billion yuan from October's 651.3 billion yuan .

New bank loans rose to a record 11.6 trillion yuan in the first 11 months of the year, according to Reuters calculations based on central bank data.

Lending continues to be driven heavily by robust mortgage growth despite a series of measures rolled out by the authorities to cool surging home prices.

Mid-to long-term loans to households, primarily mortgages, rose to 569.2 billion yuan, or 71.2 percent of all loans, up from September's 66.5 percent.

Broad M2 money supply (M2) grew 11.4 percent from a year earlier, central bank data showed on Wednesday, slightly below forecasts.

Outstanding yuan loans grew by 13.1 percent by month-end on an annual basis.

Outstanding loans had been forecast to rise 13 percent, while money supply was seen up 11.5 percent.

China's total social financing (TSF), a broad measure of credit and liquidity in the economy, rose to 1.74 trillion yuan in November from 896.3 billion yuan in October.

TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offers, loans from trust companies and bond sales.

China's central bank said recently that it will maintain ample liquidity in the economy while taking steps to prevent asset bubbles, adding that the balance between stabilizing growth and preventing bubbles has become more challenging.

China's economy expanded at a steady 6.7 percent in the third quarter and looks set to hit Beijing's full-year target.

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