According to preliminary statistics, aggregate financing to the real economy (AFRE) (flows) was RMB 15.37 trillion in the first three quarters of 2018, down RMB 2.32 trillion year on year (y-o-y). Specifically, RMB loans to the real economy registered an increase of RMB 12.8 trillion, RMB 1.34 trillion more than the same period of 2017; foreign currency-denominated loans to the real economy (RMB equivalent) recorded a decrease of RMB 191.3 billion, dropping RMB 160.8 billion further y-o-y; entrusted loans registered a decrease of RMB 1.16 trillion, dropping RMB 1.84 trillion further y-o-y; trust loans registered a decrease of RMB 465.2 billion, dropping RMB 2.25 trillion further y-o-y; undiscounted bankers’ acceptances recorded a decrease of RMB 678.6 billion, dropping RMB 1.14 trillion further y-o-y; net financing of corporate bond stood at RMB 1.59 trillion, up RMB 1.41 trillion y-o-y; outstanding local government special bonds reached RMB 1.7 trillion, up RMB 143.8 billion y-o-y; domestic equity financing by non-financial enterprises amounted to RMB 309.9 billion, down RMB 291.8 billion y-o-y. AFRE (flows) reached RMB 2.21 trillion in September, up RMB 276.8 billion over August and down RMB 39.7 billion y-o-y.

By structure, RMB loans to the real economy accounted for 83.2% of AFRE (flows) in the first three quarters of 2018, up 18.4 percentage points y-o-y; foreign currency-denominated loans to the real economy (RMB equivalent) occupied -1.2%, down 1 percentage point y-o-y; entrusted loans accounted for -7.5%, down 11.4 percentage points y-o-y; trust loans occupied -3%, down 13.1 percentage points y-o-y; undiscounted bankers’ acceptances accounted for -4.4%, down 7 percentage points y-o-y; corporate bonds occupied 10.3%, up 9.3 percentage points y-o-y; local government special bonds accounted for 11%, up 2.2 percentage points y-o-y; and domestic equity of non-financial firms made up for 2%, down 1.4 percentage points.

Note 1: AFRE (flows) refers to the volume of financing provided by the financial system to the real economy. In the calculations of AFRE (flows), data are from PBC, CBIRC, CSRC, CCDC and NAFMII.

Note 2: PBC improved the statistical method of AFRE in July 2018. Specifically, PBC incorporated “asset-backed securities of depository financial institutions” and “written-off loans” into AFRE statistics under the item of “other financing.”

Note 3: On incorporating local government special bonds into AFRE statistics: Local government special bonds refer to the government bonds issued by local governments for public welfare projects with certain earnings, whose principal and interests will be repaid with the government funds or special income from the public welfare projects within a certain period of time as agreed. The issuance of local government special bonds has sped up since August, 2018 exhibiting visible replacement effect for bank loans and corporate bonds. In order to have the replacement effect reflected in the statistics the PBC has incorporated local government special bonds into AFRE since September, 2018.

The monthly comparable statistics of AFRE (flows) since 2017 are as follows.

Month	January 2017	February 2017	March 2017	April 2017	May 2017	June 2017
Flow of the Month (Unit: RMB 100 million)	37095	11046	24001	15604	13136	21131
In which: Local Government Special Bonds	0	0	1806	2019	1934	1991
Asset-backed Securities of Depository Financial Institutions	-129	-10	164	-505	294	113
Written-off Loans	253	149	846	210	277	1309
Month	July 2017	August 2017	September 2017	October 2017	November 2017	December 2017
Flow of the Month (Unit: RMB 100 million)	14983	17514	22451	12004	19139	15865
In which: Local Government Special Bonds	3326	1924	2517	1315	2282		849
Asset-backed Securities of Depository Financial Institutions	-505	446	324	61	248		1476
Written-off Loans	205	250	1276	271	481		2059
Month	January 2018	February 2018	March 2018	April 2018	May 2018		June 2018
Flow of the Month (Unit: RMB 100 million)	30673	11854	15685	17726	9458		14852
In which: Local Government Special Bonds	0	108	662	808	1012		1019
Asset-backed Securities of Depository Financial Institutions	-137	-146	387	821	377		272
Written-off Loans	320	261	1234	259	479		1737
Month	July 2018	August 2018	September 2018
Flow of the Month (Unit: RMB 100 million)	12161	19286	22054
In which: Local Government Special Bonds	1851	4106	7389
Asset-backed Securities of Depository Financial Institutions	123	501	895
Written-off Loans	176	377	1612