BEIJING, June 12 (Reuters) - China’s total social financing (TSF), a broad measure of credit and liquidity in the economy, dropped sharply to 760.8 billion yuan ($118.80 billion) in May from 1.56 trillion yuan in April, data from the central bank showed on Tuesday.
TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.
The economic barometer has become a gauge of fundraising trends and can provide hints of activity in China’s vast and unregulated shadow banking sector.
Chinese authorities have been trying to clamp down on riskier forms of lending as part of a broader campaign to contain and reduce systemic financial risks. ($1 = 6.4038 Chinese yuan) (Reporting by Beijing Monitoring Desk; Editing by Sam Holmes)