Analysts at TD Securities note that China’s August Aggregate financing rose by CNY 1,980bn from CNY 1,010bn in July (mkt CNY 1,604.5bn) and new loans in August climbed by CNY 1,210bn from CNY 1,060bn in July.

• “M2 Money supply rose 8.2% y/y in August (mkt 8.2% y/y). The pace of aggregate financing, new loans and money supply growth slowed sharply in July. A rebound in all three was widely expected in August as the authorities likely opened the credit taps further, albeit in a calibrated manner, while credit demand likely picked up slightly. Banks balance sheets shrank in July but some of this was expected to have reversed in August.”