Business
17:35, 15-Sep-2017
China August new yuan loans rise to over a trillion yuan, beat forecasts
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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.
According to the People’s Bank of China’s (PBOC) newly released report on August Financial Statistics on Friday, Broad M2 money supply (M2) grew 8.9 percent in August from a year earlier, and the increase rate is 0.3 percent lower than the end of July and 2.5 percent lower than the same period of last year, missing forecasts for an expansion of 9.1 percent.
Narrow Money supply (M1) grew 14% from a year earlier, 1.3 percent lower than the end of July, and 11.3 percent lower than the same period of last year.
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 credit-fueled 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.
Source(s): Reuters