NEW bank loans in China rebounded more than expected in November as the central bank lowered some key lending rates and encouraged faster credit growth to prop up the slowing economy.

Chinese banks extended 1.39 trillion yuan (US$197.47 billion) in new yuan loans in November, rising sharply from October and beating analysts’ expectations, according to data released by the People’s Bank of China late Tuesday.

Analysts polled previously had predicted new yuan loans would rebound to 1.2 trillion yuan in November, from 661.3 billion yuan in the previous month and compared with 1.25 trillion yuan a year earlier.

Bank lending in China usually rebounds in November from a seasonal retreat in October when a week-long National Day holiday falls.

“November credit data improved, with new loans rising more than expected and total social financing growth stabilizing,” said Luo Yunfeng, an analyst at Merchants Securities.

Household loans, mostly mortgages, rose to 683.1 billion yuan in November from 421 billion yuan in October, while corporate loans jumped to 679.4 billion yuan from 126.2 billion yuan.

Outstanding yuan loans grew 12.4 percent from a year earlier, unchanged from the pace in October. Analysts had expected 12.3 percent.

Some analysts say the annual comparison is a better way to assess trends in China’s credit growth, rather than more volatile monthly readings. After surging early in the year, it has been decelerating since.

Broad M2 money supply grew 8.2 percent from a year earlier, below estimates of 8.4 percent in the poll. It rose 8.4 percent in October.

Growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, held steady at 10.7 percent. TSF growth slowed to 10.7 percent in October from 10.8 percent in September.

TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

In November, TSF surged to 1.75 trillion yuan from 618.9 billion yuan in October. Analysts polled previously had expected 1.5 trillion yuan.

China has softened a crackdown on shadow lending to ease pressure on private firms, while faster government bond issuance is giving a boost to TSF.

(SD-Agencies)