Chinese banks provided $169.27 billion in new loans during the month, the publication said, citing data from the People’s Bank of China. That figure surpassed analysts’ expectations, especially considering China’s efforts to reduce risk tied to a surge in corporate debt. An earlier survey from Reuters found analysts predicted new yuan loans in November to hit 800 billion, up from October’s figure of 663.2 billion yuan. But Chinese banks recorded 1.12 trillion yuan, reports said.
“New loans exceeded expectations due to strong corporate financing demand, with medium- and long-term corporate and household loans expanding sharply,” said Ciatong Fund Management Analyst Zheng Lianghai in an interview with Reuters.
A surge in bank lending may also be attributed to regulators’ efforts to curb shadow and off-balance sheet lending, as well as a downturn in the nation’s corporate bond market, which has pressed companies to seek financing from traditional bank loans.
Earlier this year, reports in The New York Times said China has made headway in its anti-shadow banking efforts. The Prudential Regulation Bureau announced in August it reached initial targets to combat illicit lending in China and had, so far, developed 20 new rules for regulators to heighten oversight of shadow banking activity in the country.