Yuan loans hit low for year in October (2)

Issuances of corporate bonds raised 299.2 billion yuan in the month, compared with 227.8 billion in September, making them the only means of financing that showed an increase last month.

Non-bank financing, particularly debt issuance, picked up, helped in part by supporting policies, said Chang Jian, China economist with Barclays Bank.

The share of bank credit in total financing fell to 55.5 percent from 59 percent in 2011, while that of debt financing increased to 14.3 percent from 9.5 percent, according to the central bank's figures.

The amount of debt financing rose by 135 billion yuan last month year-on-year.

The latest data support the central bank's view that the country's monetary and financing conditions are not so restrictive that they will fail to support annual economic growth at a rate of between 7.5 and 8 percent, Chang said.

"In other words, aggressive easing has not been necessary."

Yao Wei, China economist at Societe Generale SA, said it seems the central bank does intend to put a cap on bank lending for the year, keeping the amount lent out below 8.5 trillion yuan.

She said the country's credit stock remains accommodative, noting the total amount of outstanding bank credit increased by 15.9 percent year-on-year in October, only slightly less than the 16.2 percent rise seen in September.

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