China's household loans likely to rise further

RMB new loans growth posted a strong rebound in September, led by medium-long term loans. RMB new loans were CNY1050bn, up from CNY810bn in August and above consensus' expectation of CNY900bn. 

It is encouraging to see that loan structure improved with medium-long term corporate loans jumping to CNY356bn, from CNY122bn in August. This suggests that the central government's efforts to counter the local bureaucratic inaction and push for starts of infrastructure investment may be taking effect. 

Meanwhile, household loans rise to CNY422bn from CNY353bn in August on robust property sales, and it is expected to expand further given the PBoC cut down-payments for first-time home buyers in low-tier cities recently, says Barclays.