Data from the Chinese central bank points to a sizeable contraction in total social financing in 2018.
According to preliminary data from the People’s Bank of China total social financing was 19.26 trillion yuan in 2018, for a decrease of 3.14 trillion yuan.
15.67 trillion yuan in new renminbi loans were made to the real economy, for a YoY increase of 1.83 trillion yuan.
Foreign currency loans to the real economy fell by 420.1 billion yuan in yuan terms, for a further decline of 421.9 billion yuan compared to the same period last year; entrusted loans fell by 1.61 trillion yuan, for a further decline of 2.38 trillion yuan, wile trust loans fell by 690.1 billion yuan, for a further decline of 2.95 trillion yuan.
Undiscounted bank acceptance bills fell by 634.3 billion yuan, for a further decline of 1.17 trillion yuan, while net corporate bond financing was 2.48 trillion yuan, for a YoY increase of 2.03 trillion yuan.
Local government special bonds saw net financing of 1.79 trillion yuan, for a YoY decline of 211 billion yuan, and non-financial enterprise domestic equity financing was 360.6 billion yuan, for a YoY decline of 515.3 billion yuan.
In structural terms, renminbi loans made to the real economy in 2018 accounted for 81.4% of total social financing for the period, for a YoY rise of 19.6 percentage points, while corporate bonds accounted for a 12.9% share, for a YoY rise of 10.9 percentage points.
Local government special bonds and non-financial enterprise domestic equity financing accounted for 9.3% and 1.9% respectively, for a YoY increase of 0.4 percentage points and a decline of 2 percentage points.
In December total social financing was 1.59 trillion yuan, for an increase of 3.3 billion yuan compared to the same period last year.
As of the end of December China’s outstanding total social financing was 200.75 trillion yuan, for an increase of 9.8% compared to the same period a year ago.