China August new yuan loans rise to 1.09tn yuan
Chinese banks extended 1.09 trillion yuan ($166.46 billion) in net new yuan loans in August, well above analysts’ expectations. Analysts polled by Reuters had predicted new yuan loans of 900 billion yuan, up from 825.5 billion yuan in July.
Broad M2 money supply (M2) grew 8.9 percent in August from a year earlier, central bank data showed on Friday, missing forecasts for an expansion of 9.1 percent and compared with July’s 9.2 percent. Outstanding yuan loans at the end of August grew 13.2 percent from a year earlier, more than an expected 13 percent rise but level with the pace in July.
China’s banks extended a record 12.65 trillion yuan in loans in 2016 as the government encouraged creditfueled stimulus to meet its economic growth target. The credit explosion has stoked worries about financial risks from a rapid build-up in debt, which authorities have pledged to contain this year. — Reuters