Total social financing in China dropped sharply in October, to reach 856.4bn Yuan, according to the latest data out overnight from the People's Bank of China (PBoC), from 1,400bn Yuan in the month before.
The consensus estimate had been for 1,180bn Yuan in total lending.
In line with the above, new Yuan-denominated loans slipped to 506.1bn Yuan, from 787bn in the month before and versus forecasts for a reading of 600bn.
Those figures come as authorities in Beijing act to restrain lending by the shadow banking system.
Money supply expanded at a 14.3% year-on-year pace, as expected.
"The decline in credit data confirms our view that monetary policy has started to tighten [and is expected to do so further in a gradual way]," Nomura wrote following the release of the data.
Nevertheless, at the moment the Japanese broker foresees only a small slowdown in economic growth, from the peak reached in the third quarter down towards 7.5% in quarter four and 6.9% next year.
"We expect the government to cut its GDP growth target for 2014 to 7% from 7.5% for 2013 at the Central Economic Working Conference in December," Nomura added.
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The consensus estimate had been for 1,180bn Yuan in total lending.
In line with the above, new Yuan-denominated loans slipped to 506.1bn Yuan, from 787bn in the month before and versus forecasts for a reading of 600bn.
Those figures come as authorities in Beijing act to restrain lending by the shadow banking system.
Money supply expanded at a 14.3% year-on-year pace, as expected.
"The decline in credit data confirms our view that monetary policy has started to tighten [and is expected to do so further in a gradual way]," Nomura wrote following the release of the data.
Nevertheless, at the moment the Japanese broker foresees only a small slowdown in economic growth, from the peak reached in the third quarter down towards 7.5% in quarter four and 6.9% next year.
"We expect the government to cut its GDP growth target for 2014 to 7% from 7.5% for 2013 at the Central Economic Working Conference in December," Nomura added.
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