According to the Reuters poll, the number of loans made in China in October was down significantly from September's figures.
Chinese banks lent 800 billion yuan ($110.4 billion) last month, far less than the 2.47 trillion yuan in September. That amount provided was even less than the October 2021 result of 826.2 billion yuan.
Goldman Sachs analysts concluded that regardless of the continuation of credit support to the manufacturing sector, and also despite the creation of liquidity through additional collateralized lending (PSL), overall demand for credit may remain sluggish.
In October, the People's Bank of China (PBOC) lent 154.3 billion yuan to three banks through its PSL credit line.
The People's Bank of China has pledged to implement adaptive policies to support economic growth, but it has limited capacity because of concerns about capital outflows and the weakening of the yuan.
The central bank governor pledged to maintain normal monetary policy and positive interest rates for as long as possible, predicting that China's potential economic growth is likely to remain within reasonable limits.
According to the survey, outstanding RMB loans will rise 11.2% in October from a year ago, unchanged from September. Broad money supply M2 growth in October was 12.0% vs. 12.1% in September.
China's Ministry of Finance reported that local governments issued 24.1 billion yuan worth of special bonds in September, up from 51.6 billion yuan in August.