Last week I noted that Chinese big 4 banks saw drop in deposits and fall in lending in the first 28 days of October. For the first 28 days, the big four banks had made RMB125 billion of loans.
But then, these same four banks rushed to lend RMB100 billion in the last three days of October, according to 21st Century Business Herald. This brings the total loans from the big 4 banks for the month to RMB220 billion. Meanwhile, after seeing an RMB1.8 trillion drop in deposits, the total deposits drop was RMB1.25 trillion for the whole month, which means that deposits increased massively in the last three days of the month.
At the same time, bond issuance probably has continued to play a big part in total credit growth. Despite having the Golden Week holiday, total net issuance for the month amounted to RMB222.4 billion, which was flat compared with September according to the aggregate financing data.