In August this year, the increase in China’s social financing, which reflects the financial support for the real economy, amounted to RMB 3.12 trillion ($0.43 trillion), up by RMB 631.6 billion compared to the same period last year, as announced by the People’s Bank of China (PBOC).
Moreover, in August, new Chinese currency loans totaled RMB 1.36 trillion ($0.19 trillion), increasing by RMB 86.8 billion ($12 billion) on year, much higher than poor performance in July at RMB 345.9 billion ($48 billion). This figure includes increased loans for new houses after China eased its policies for the first home purchases.
Several stimulus policies have been issued recently, bolstering market sentiments. The new Chinese currency loans were far higher than in the corresponding period in recent years, signaling better expectation as regards the future prospects for the real estate market. However, sales in the real estate market in China are still poor and more time is needed for more solid support for the steel market to emerge.
Rebar and HRC futures prices at Shanghai Futures Exchange have added just 0.05 percent and 0.21 percent compared to last Friday. However, iron ore received a bigger boost, with futures prices at Dalian Commodity Exchange gaining 2.41 percent.
