BEIJING – New loans from Chinese banks rose sharply in June, surpassing conventional wisdom, signaling that the country’s central bank continues to support virus-hit businesses and support a slowing economy.
Chinese banks pledged 2.12 trillion yuan ($ 326.63 billion) in new loans last month, up from 1.50 trillion yuan in May, according to data released by the People’s Bank of China on Friday. Economists polled by The Wall Street Journal predicted 1.80 trillion yuan in new loans. New yuan-denominated loans issued by Chinese banks in June rose 308.6 billion yuan over the same period last year.
In a separate statement, the NBK said total social finance – a broader lending measure that includes financing offered by non-banking institutions – rose to 3.67 trillion yuan, up from 1.92 trillion yuan in May.
M2 data – the broadest measure of money supply – also exceeded expectations, increasing by 8.6% in June. This compares to the 8.3% growth rate recorded in the previous month and the 8.2% growth forecast in the WSJ survey.
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Jul 9, 2021 06:25 AM ET (10:25 AM GMT)
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