Chinese bank loans hit almost 8 trillion yuan in first half of 2017

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Chinese banks issued 7.97 trillion yuan (1.17 trillion US dollars) of new yuan-denominated loans in the first half of 2017, an increase of 436.2 billion yuan (64.27 billion US dollars) from the period last year, China's central bank said on Wednesday.

The People's Bank of China (PBOC) issued a report saying that among the loans in H1, household loans saw a growth of 3.77 trillion yuan.

In June alone, a total of 1.54 trillion yuan of yuan-denominated loans were issued by Chinese banks, an increase of 153.3 billion yuan from June last year.

Broad M2 supply that covers cash in circulation and all deposits grew 9.4 percent in June from a year earlier, a slowdown from 9.6 percent in May.

People's Bank Of China (PBOC) headquarters in Beijing, China, on May 14, 2017. /VCG Photo ‍

Officials said the slower M2 growth was a result of successful financial deleveraging.

"The capital that flows toward those off-balance sheet products has decreased, and that is part of the reason that we see a slower M2 growth. It's a result of deleveraging," said Ruan Jianhong, head of the Survey and Statistics Department at the PBOC.

Ruan also said the central bank will maintain its steady and neutral monetary policies while maintaining adequate liquidity in the market.

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