China Au­gust new yuan loans rise to 1.09tn yuan

Kuwait Times - - BUSINESS -

BEI­JING:

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

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