!['A lot of the China loans this year [were] M&A driven - such as Bright Foods, Alibaba and Focus Media'.](http://cdn.i.haymarketmedia.asia/?n=finance-asia%2fcontent%2fAlib.jpg&h=684&w=1216&q=100&v=9726d7b&c=1)
The recent uptick in loan volumes could slow as bond markets return to health and lenders turn selective in the fourth quarter.
Asia's loan and bond markets have long had a displacement effect on each other. Last year - a record year for Asia's bond markets - was a limp year for loans.
When bond markets are dead, borrowers often turn to loan markets for funding. During the emerging market bond rout this summer, when most Asian investors were loath to touch new bonds with a barge pole, there was a noticeable uptick in the region's loan volumes.
“When the bond blip...
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