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New loans in October a new 4-month high

October credit data released yesterday by the Central Bank confirmed some banks to loosen credit from the side. Data show that October new Yuan loans of 586.8 billion yuan, increased 19.9% per cent, hit a four-month high.  

fine tune the policy-induced rebound in credit

this year, the credit in the window under the guidance of regulators had remained stable, and contracted in the quarter. October new Yuan loans of 586.8 billion yuan, rose 17.5 billion yuan, compared with 470 billion yuan in September has increased 19.9%.

"October taking into account the ' 11 ' long vacations, General credit does not increase so much, but the data 20% more in October than in September, it is a sign of credit easing. "The Bank said. Reporter learned that, at present, there are a number of banks received notice from regulators, increased a small amount loans, but increase in loans mainly to small and medium enterprises. The State Department said, we should focus our policies more targeted, flexible and forward-looking, proper adjustments and fine-tuning.

au report finds that credit growth rebounded sharply, mainly due to the directed easing and fine-tune policy. E Yongjian, a researcher at the Centre for financial studies agreed that the Bank of communications, the recent address by the Prime Minister released to fine-tune policy signals, October loans data to prove this point further, in his view, the scale of credit expansion during the year, in November, December's bi-monthly new loans could be 600 billion to 650 billion range, at around 7.5 trillion in new loans for the year.

money supply to new lows

credit show signs of relaxation, but the money supply continued to test historic lows. In September, the lowest for almost 7 years after end of October, M2 money supply growth continued downward, 12.9%, refreshed again low, narrow money M1 rose 8.4%, dropped to single digits.

Strategic Development Department of Bank of China Senior Economist Zhou Jingtong think, M2 growth has come to a more normal and tight levels, future orientation of monetary policy should be to continue fine tuning or preset, the steady tone of the song, this is still a "directional easing".

analysis of gold in October, macro data show downward trend established, and economic growth, while slowing, slowing but steady. Since the main objective of monetary policy is to prevent inflation, therefore, monetary policy will continue to fine-tune sound tone, main ways to launch open market liquidity. Lowered reserve requirement ratio is likely this year, but will start from the purposes of difference reserve ratio.