Market news
15.10.2019, 14:10

China's credit keeps growing - ING

Iris Pang, the economist for Greater China at ING, notes that M2, a widely-used gauge of credit expansion, increased to 8.4% year on year in September from 8.2% a month ago. 

  • "Renminbi loans grew by CNY 13.9 trillion in the third quarter, which is equivalent to around 14.5% of nominal GDP for the four quarters from 3Q18 to 2Q19.
  • Of all the items, the most eye-catching is the CNY 2 trillion increase in local government special bonds in the third quarter used to finance infrastructure projects. The quota for these bonds was only CNY 2 trillion, with this entire amount used in 3Q alone. 
  • The substantial increase in local government bonds suggests that the economy has relied on infrastructure investments to support GDP growth.
  • We expect there will be another CNY 1 trillion increase in local government special bonds in the fourth-quarter, with the central government having allowed local governments to borrow next year's issuance quota.
  • This is why we think China will continue to accumulate debt until the US-China trade war ends and during this time infrastructure investments will continue to be the main pillar of economic growth."

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location