China's banking sector hit a whole new high level for the entire year in the month of November after it recorded positive turnouts in the loan and financing sectors.

ECNS News reported that a Reuters poll had placed the lendings for the month of November at 720 billion yuan ($103 billion). The lending rates, however, superseded this record after the People's Bank Of China (PCOS) recorded a 796.4 billion yuan ($115 billion) loan extension from the 651.3 billion yuan ($93.7 billion) recorded in October.

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A statement issued by PCOS said that despite harsh regulations implemented in the real estate sector in China, general consumer loans especifically home mortgages contributed a great deal to the increase.

The total social financing hit a new high in November after it registered 1.74 trillion yuan ($250 billion), almost doubling the 896.3 billion ($129 billion) yuan registered in October.

Liu Dongliang, a senior analyst at China Merchants Bank, said that the loans had gone past the expected on and off balance sheet records.

"This was in line with the most economic indicator for November," Dongliang said. "It signaled a rebound of demand in the economy.

Shadow banking contributed also greatly to the rise in the total social financing that had been registered in November. The finance sector recorded a 479 billion yuan ($99 billion) boost, up from the 55 billion yuan ($7.9 billion) registered in October ($7.9 billion), according to The Business Times.

The growth is assumed to be associated with the weakening of the yuan as companies seek to expand their local currency in a bid to catch up with the dollar expectations. The sudden increase, however, according to analysts, is something that will welcome criticism from the governing body of China.

"Today's surprising data will likely trigger regulatory concerns," David Qu said, an economist at the Australian and New Zealand Banking Group. "If the Chinese regulator starts to restrict shadow banking activities, there may be a spill over to the bond market due to liquidity tightening."

Tagschina, finance, Loans, real estate, Shadow Banking