China Sept new yuan loans rise well above forecasts to 1.22t yuan

Beijing

CHINESE banks extended 1.22 trillion yuan (S$251.1 billion) in new loans in September, a three-month high and well above expectations, while money supply growth edged up, indicating the central bank is keeping policy accommodative to support economic growth.

The central bank has pledged to keep policy slightly loose, but recent data has suggested many Chinese companies are hoarding cash rather than investing it, adding to views that further central bank easing would not be as effective in spurring the economy as in the past.