China's Sept financial data beats forecasts as credit shifts

China's September financial data came in slightly better than market expectations. New Yuan loans rose sharply from August, and new total social financing also exceeded its interim high at the end of 2Q26. Seasonal factors and the launch of new policy-based financial instruments in September were probably the main drivers.

On October 14, the latest data released by the People's Bank of China (PBOC) showed that Yuan loans increased by Yuan 11.52 trillion ($1.72 trillion) in the first three quarters of 2026, Yuan 3.04 trillion less than a year earlier. By sector, household loans fell by Yuan 1.03 trillion, a