New yuan loans rise, M2 growth slowing
Chinese banks extended 1.09 trillion yuan ($167.7 billion) of new loans in August, well above market forecasts and buoyed by demand from home buyers and companies.
New yuan-denominated loans in August expanded from 825.5 billion yuan in July and exceeded market expectations of 950 billion yuan.
By the end of August, outstanding yuan loans rose 13.2 percent from a year earlier, with the increase unchanged from that at the end of July, the People’s Bank of China said on its website Friday.
E Yongjian, an analyst with Bank of Communications, said the faster-than-expected new loan increase in August reflected enterprises’ increasing demand for credit amid stable economic growth.
At the end of August, M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.9 percent from a year earlier, slowing down from 9.2 percent growth recorded a month ago.