China's new bank loans rise to 1.25t yuan in Aug, missing forecast

CHINESE banks extended 1.25 trillion yuan (S$252.4 billion) in new yuan loans in August, up from July but below analysts’ expectations, as the central bank expanded credit to try to shore up the slowing economy.

Analysts polled by Reuters had predicted new yuan loans would rise to 1.48 trillion yuan in August, more than double from the 679 billion yuan in the previous month and higher than the 1.22 trillion yuan in the same month last year.

Broad M2 money supply grew 12.2 per cent from a year earlier, central bank data showed on Friday (Sep 9), above estimates of 12.1 per cent in the Reuters poll. M2 grew 12 per cent in July from a year ago.

Outstanding yuan loans at the end of August were up 10.9 per cent from a year earlier, compared with the 11 per cent growth the previous month. Analysts had expected 11 per cent growth. REUTERS