China bank lending up in July
China's bank lending rose in July, the central bank said Tuesday, as money poured into a massive rescue for the country's stock market.
Domestic banks extended new loans of 1.48 trillion yuan ($238 billion), up from 1.27 trillion yuan in June -- almost twice the estimate of economists surveyed by Bloomberg News -the People's Bank of China (PBoC) said.
But total social financing, an alternative measure of credit in the real economy, hit 718.8 billion yuan last month, down from 1.86 trillion yuan in June and short of economists' forecast of 1.0 trillion yuan, according to Bloomberg.
"China's new yuan loans rose sharply... as stock market rescue policy lifted new loans," ANZ economists Liu Li-Gang and Louis Lam wrote in reaction to the data. Authorities have been aggressively supporting shares after China's key Shanghai stock index plunged more than 30 percent over three weeks from a June 12 peak before rebounding on the official intervention measures. For the first seven months of this year, Chinese banks extended a total of 8.04 trillion yuan in new loans, up 2.15 trillion yuan from the same period last year, the PBoC said. An unnamed central bank official said in a statement that government support for the stock market was one reason for the yearon-year spike.