Chinese credit growth slowest since 2005 in November
The broadest measure of credit growth for China's economy rose at its slowest pace in over a decade.
According to the People's Bank of China, net new local currency loans in the Asian giant picked-up from the 697bn yuan observed in October to 1.25trn yuan for November (consensus: 1.2trn yuan).
Aggregate financing to the real economy (AFRE), the PBoC's measure of credit growth, also accelerated, rising from 729bn yuan to 1.52trn yuan.
But in year-on-year terms, the rate of change in AFRE retreated from 10.2% to 9.9%, reaching its slowest pace since 2005.
For Chang Liu at Capital Economics, that slowdown reflected the impact of tighter regulations on so-called 'shadow financing', even as bond sales continued to ebb because local governments had already used up their annual quotas.
"The upshot is that the PBOC’s recent efforts to loosen monetary conditions and the government’s stepping up of fiscal support have not been able to stabilise growth of lending to the public and private sectors," Liu said.
"[...] We think officials will respond by providing additional stimulus, including cuts to benchmark lending rates."