China's October financing data: Mixed results (ICYMI)

<p>China published financing data for October on Monday, it was a bit of a mixed result. Justin had the data here:</p><ul><li><a href="https://www.forexlive.com/news/china-october-m2-money-supply-103-vs-103-yy-expected-20231113/" target="_blank" rel="follow" data-article-link="true">China October M2 money supply +10.3% vs +10.3% y/y expected</a></li></ul><p>New yuan loans in October came in at 738.4bn CNY</p><ul><li>beating the expected 665bn, and well down from September's 2310bn</li></ul><p>Total (aggregate) Social Financing came in at 1850bn CNY</p><ul><li>barely missing the expected at 1900bn CNY, and also well down from September's 4120bn CNY</li></ul><p>The dip for both of these measures in October from September can be attributed to a combination of:</p><ul><li>the September result was end-of-quarter which has a tendency to jump</li><li>other seasonal factors</li><li>both are volatile data series </li></ul><p>The 'but' is that there may be more to it than that (i.e. a drying up of borrowing demand), however, given both were within a shade of estimates I'd be dismissing this more dire explanation. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.