China's RMB506b loan growth disappoints market

It was 13% below their expectations.

According to Bernstein Research, new loan growth during the month was RMB 506 billion, 13% below market expectations and the weakest monthly level year-to-date (nearly 20% below the previous low of RMB 620 billion of new loans issued in February).

The portion of loan growth that translates the most into economic growth also showed weakness in October as medium- and long-term loan issuance (at RMB 300bn) fell to the lowest level year-to-date. 

"Residential mortgage loan growth in October was RMB 116 billion, a healthy figure but representing
the 2nd lowest monthly issuance year-to-date," Bernstein Research said.