New yuan loans rise, M2 growth slow­ing

Global Times US Edition - - BIZUPDATE -

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.

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