Report on Aggregate Financing to the Real Economy (Outstanding) By End of September 2018

　　According to preliminary statistics, outstanding aggregate financing to the real economy (AFRE) reached RMB 197.3 trillion at end-September, up 10.6% year on year (y-o-y). Specifically, outstanding RMB loans to the real economy stood at RMB 131.81 trillion, up 13% y-o-y; outstanding foreign currency-denominated loans to the real economy (RMB equivalent) were RMB 2.45 trillion, down 1.6% y-o-y; outstanding entrusted loans registered RMB 12.81 trillion, down 7.7% y-o-y; outstanding trust loans reached RMB 8.08 trillion, increasing 0.2% y-o-y; outstanding undiscounted bankers’ acceptances stood at RMB 3.76 trillion, down 13.9% y-o-y; outstanding corporate bonds were RMB 19.45 trillion, up 7% y-o-y; outstanding local government special bonds reached RMB 7.18 trillion, up 42.5% y-o-y; and outstanding domestic equity of non-financial firms amounted to RMB 6.96 trillion, up 9.2% y-o-y.

　　By structure, outstanding RMB loans to the real economy at end-September accounted for 66.8% of end-September AFRE, up 1.4 percentage points y-o-y; outstanding foreign currency-denominated loans to the real economy (RMB equivalent) occupied 1.2%, down 0.2 percentage points y-o-y; outstanding entrusted loans accounted for 6.5%, down 1.3 percentage points y-o-y; outstanding trust loans occupied 4.1%, down 0.4 percentage points y-o-y; outstanding undiscounted bankers’ acceptances accounted for 1.9%, down 0.5 percentage points y-o-y; outstanding corporate bonds occupied 9.9%, down 0.3 percentage point y-o-y; outstanding local government special bonds accounted for 3.6%, up 0.8 percentage points y-o-y; and outstanding domestic equity of non-financial firms made up for 3.5%, down 0.1 percentage point.

　　Note 1: AFRE (outstanding) refers to the outstanding financing provided by the financial system to the real economy at the end of a period (end of the month, end of the quarter or end of the year). In the calculation of AFRE, data are from PBC, CBIRC, CSRC, CCDC and NAFMII, etc.

　　Note 2: PBC improved the statistical method of AFRE since July 2018. Specifically, PBC incorporated “asset-backed securities of depository financial institutions” and “written-off loans” into AFRE statistics under the item of “other financing.”

　　Note 3: Explanations for the inclusion of local government special bonds into AFRE statistics: local government special bonds are issued by local governments for public welfare projects with certain earnings, whose principal and interest will be repaid as government funds or special income from the public welfare projects within a certain period of time as agreed. Since August of this year, the issuance of local government special bonds has been accelerated, exhibiting visible replacement effect for bank loans and corporate bonds. With the aim to have accurate AFRE statistics, the PBC has incorporated “local government special bonds” into AFRE statistics since September 2018 due to this replacement effect.

　　The monthly balance of AFRE (outstanding) and year-on-year growth rate of comparable statistics since 2017 are as follows:

Table 1: Adjusted Monthly AFRE (outstanding) Balance since 2017

Table 2: Adjusted Monthly Year-on-year Growth Rate of AFRE (outstanding) since 2017