The release of new financial data in September is raising expectations, indicating that support for the real economy is growing, according to Economic Information Daily, citing analysts.

New yuan loans came in at 1.38 trillion yuan (US$200 billion) in September, an increase of 111.9 billion yuan from a year earlier. The growth rate of M2 and M1 also recorded 8.3% and 4% respectively, 0.1 percentage points higher than at the end of August.

Total Social Financing increased by 2.21 trillion yuan in September, which is 276.8 billion yuan more than August. The stunning gain is mainly due to the change of calculation method, as local government bonds are now included.

According to a report by the Bank of Communications, if the newly-added local government bonds are removed, TSF in September would contract by about 500 billion yuan.

This is because of the continuous contraction of the trusted and entrusted loan, and due to China’s crackdown on shadow banking.

In future, with the implementation of new regulations on asset management, it is expected that this sector of financing will be gradually restored, the report said.