According to the PBC statistics, the outstanding RMB loans issued by financial institutions increased 13.2% yoy to RMB 133.27 trillion at end Q3 2018, with growth rate up 0.5 percentage point from end Q2. RMB loans rose RMB 13.14 trillion in the first three quarters of 2018, up RMB 1.98 trillion yoy. The credit structure of loans has following features:

1. The growth of loans to enterprises and other agencies and organizations accelerated

At end Q3 2018, outstanding loans denominated in RMB and foreign currencies to non-financial enterprises and government agencies and organizations increased 10.0% yoy to RMB 88.07 trillion, with growth rate up 0.7 percentage point from end Q2. The above-mentioned loans rose RMB 7.05 trillion in the first three quarters of 2018,up RMB 1.47 trillion yoy.

In terms of loan tenor, outstanding short-term loans and bill financing to non-financial enterprises and government agencies and organizations climbed 6.1% yoy to RMB 34.96 trillion at end Q3, with growth rate up 2.2 percentage points from end Q2. Such loans increased RMB 1.91 trillion in the first three quarters of 2018, up RMB 1.94 trillion yoy. Outstanding medium to long-term loans had a yoy rise of 12.5% to RMB 50.71 trillion, with growth rate down 0.5 percentage point from end Q2. This represented a growth of RMB 4.85 trillion in the first three quarters of 2018, RMB 536.1 billion less than the growth yoy.

In terms of loan use, fixed asset loans to non-financial enterprises and government agencies and organizations at end Q3 rose by 10.8% yoy to RMB 37.94 trillion, with growth rate up 0.5 percentage point from end Q2; outstanding business loans climbed 6.2% yoy to RMB 38.02 trillion, with growth rate down 2.2 percentage points from end Q2.

2. Inclusive loans to small and micro enterprises saw faster growth

At end Q3 2018, outstanding inclusive loans to small and micro enterprises (including loans with single account credit line less than RMB 5 million and business loans to small and micro business owners and individual businesses), increased 18.1% yoy to RMB 7.73 trillion, 2.5 percentage points higher than the growth rate of end Q2.The growth in the first three quarters of 2018 was RMB 959.5 billion, 1.6 times the increase of the whole year in 2017.

At end Q3 2018, according to national standard, outstanding loans to small and micro enterprises registered RMB 25.81 trillion, up 10.0% yoy. The growth rate was 2.2 percentage points lower from end Q2. Such loans rose RMB 1.48 trillion in the first three quarters of 2018, accounting for 22.4% of new enterprise loans during the same period.

3. The growth of medium to long-term loans to industrial sectors sped up

At end Q3 2018, outstanding medium to long-term industrial loans denominated in RMB and foreign currencies rose by 6.4% yoy to RMB 8.58 trillion, with growth rate up 0.2 percentage point from end Q2. Such loans rose RMB 586.0 billion in the first three quarters of 2018, up RMB 129.5 billion yoy. In particular, loans to heavy industries increased 6.7% yoy to RMB 7.61 trillion, with growth rate up 0.1 percentage point from end Q2; loans to light industries climbed 4.0% yoy to RMB 969.0 billion, with growth rate up 0.6 percentage point from end Q2.

At end Q3 2018, outstanding medium to long-term loans denominated in RMB and foreign currencies to service sector rose by 14.2% yoy to RMB 34.36 trillion, with growth rate down 0.4 percentage point from end Q2. In particular, loans to water conservancy, environment and public facility industries grew 8.4% yoy, loans to information transmission and software service industries rose by 42.9% yoy, and loans to scientific research and technical service industries increased 19.5% yoy.

4. Growth of loans to rural areas, rural people and agriculture decelerated

At end Q3 2018, outstanding loans denominated in RMB and foreign currencies relating to agriculture, rural areas and rural people climbed 6.6% yoy to RMB 32.57 trillion, 0.7 percentage point lower than the growth rate of end Q2. Such loans grew RMB 2.11 trillion in the first three quarters of 2018, RMB 559.4 billion less than the increase in the first three quarters of 2017.

At end Q3 2018, outstanding loans denominated in RMB and foreign currencies to rural areas (at or below the county level) rose by 6.6% yoy to RMB 26.49 trillion, 0.3 percentage point lower than the growth rate of end Q2. Such loans rose RMB 1.80 trillion in the first three quarters of 2018, RMB 460.3 billion less than the growth in the first three quarters of 2017. Outstanding loans to rural families increased 14.2% yoy to RMB 9.09 trillion, 0.4 percentage point lower than that of end Q2. Such loans rose RMB 985.3 billion in the first three quarters of 2018, up RMB 98.4 billion yoy. Outstanding agricultural loans rose by 2.5% yoy to RMB 4.03 trillion, 1.1 percentage points lower than the growth rate of end Q2. Such loans rose RMB 176.4 billion in the first three quarters of 2018, RMB 102.7 billion less than the rise in the first three quarters of 2017.

5. The growth rate of mortgage loans declined

At end Q3 2018, RMB real estate loans increased 20.4% yoy to RMB 37.45 trillion,

with growth rate equal to that of end Q2. The loans rose RMB 5.21 trillion in the first three quarters of 2018, and the share in total loan increments was 39.6%, 1.5

percentage points lower than the share of the whole year in 2017.

At end Q3 2018, outstanding mortgage loans increased 17.9% yoy to RMB 24.88 trillion, with the growth rate down 0.7 percentage point from end Q2. Outstanding housing development loans rose by 24.5% yoy to RMB 10.06 trillion. In particular, outstanding development loans for government-subsidized housing projects surged 34.4% yoy to RMB 4.25 trillion.

6. The growth of household loans slowed down

At end Q3 2018, outstanding household loans denominated in RMB and foreign currencies rose 18.2% yoy to RMB 46.22 trillion, with the growth rate down 0.6 percentage point from end Q2. The household loans increased RMB 5.69 trillion in the first three quarters of 2018, RMB 45.4 billion less than the increase in the first three quarters of 2017.

At end Q3 2018, outstanding household business loans denominated in RMB and foreign currencies rose 12.1% yoy to RMB 9.98 trillion, with the growth rate accelerating 1.1 percentage points from end Q2. Household business loans increased RMB 979.4 billion in the first three quarters of 2018, RMB 397.4 billion more than the rise in the first three quarters of 2017. Outstanding household consumption loans reached RMB 36.24 trillion, up 20.0% yoy, with the growth rate down 1.1 percentage points from end Q2. The first three quarters of 2018 saw a rise of RMB 4.71 trillion in household consumption loans, RMB 442.7 billion less than the increase in the first three quarters of 2017.