BANK lending in China hit a fresh record after a much stronger-than-expected surge in credit in November, even as authorities step up efforts to reduce risks in the financial system from a rapid build-up in debt.

Chinese banks extended 1.12 trillion yuan (US$169.27 billion) in net new yuan loans in November, data from the People’s Bank of China showed late Monday, well above analysts’ expectations.

Analysts polled previously had predicted new yuan loans would rise to 800 billion yuan, from October’s 663.2 billion yuan. The November figure was well above the highest forecast in the poll.

“New loans exceeded expectations due to strong corporate financing demand, with medium and long-term corporate and household loans expanding sharply,” said Zheng Lianghai, an analyst at Caitong Fund Management.

Analysts also attributed the jump in new loans to an ongoing regulatory crackdown on off-balance sheet lending, which is forcing banks to issue more formal loans, and to a recent rout in China’s bond markets which has made it tougher for companies to raise money by issuing bonds.

The November credit splurge brought China’s total new lending so far this year to 12.94 trillion yuan, more than Italy’s GDP and exceeding 2016’s record 12.65 trillion yuan with one month left to go.

Household loans, mostly mortgages, rose to 620.5 billion yuan in November from 450.1 billion yuan in October, according to calculations based on the central bank’s data.

Household loans accounted for 55 percent of total new loans percent last month, down from 68 percent in October.

Corporate loans rose to 522.6 billion yuan in November from 214.2 billion yuan a month earlier.

Broad M2 money supply (M2) in November grew 9.1 percent from a year earlier, beating forecasts for an expansion of 8.9 percent and picking up from 8.8 percent in October, which was the slowest pace since records began in 1996.

China’s central bank has said a slowdown in M2 growth could be a “new normal” due to official deleveraging efforts in the financial system and has urged markets not to read to much into the cooler growth.

Outstanding yuan loans at the end of November grew 13.3 percent from a year earlier, faster than an expected 13-percent rise.(SD-Agencies)