MNI 5 THINGS: China's Corporate Bond Issuances Surge in Nov

     BEIJING (MNI) - Here are the key points from China's November money supply

and credit growth data released by the People's Bank of China (PBOC) on Tuesday:

     - Corporate bonds issued were CNY316.3 billion in November, more than

double CNY138.1 billion in October. This indicated that the central bank's

effort to encourage bond financing with supporting tools like Credit Risk

Mitigation Warrants (CRMWs) has begun to take effect.

     - Shadow banking finance contracted at a slower pace in November. Trust

loans, entrusted loans and undiscounted bankers' acceptances together decreased

by CNY190.4, following a decline of CNY267.5 billion in October.

     - Total social financing (TSF) surged to CNY1.52 trillion from CNY728.8

billion in October, compared with CNY1.43 trillion projected by an MNI survey.

The gain was mainly due to the smaller contraction of shadow banking, the gain

in corporate bonds, as well as lending to the real economy.

     - The amount of new loans were CNY1.25 trillion in November, compared with

CNY1.2 trillion projected by the MNI survey and CNY697 billion in October. It

reflected banks' response to the PBOC's request to expand lending to private and

small companies.

     - M2 in November grew by 8% y/y, a point many economists considered a

minimum necessary for China's economy, missing the MNI survey median of 8.1% and

stayed at October's level. M1 growth also fell lower, decreasing to 1.5% y/y in

November from 2.7% in October. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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