China: Bank lending jumps in June
In June, Chinese banks distributed CNY 1.81 trillion (USD 204 billion) in new yuan loans. The reading came in above the CNY 1.48 trillion recorded in May and slightly exceeded the CNY 1.80 trillion that market analysts had expected. In the 12 months up to June, new yuan loans totaled CNY 19.2 trillion (12 months to May: CNY 19.1 trillion).
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—rose from CNY 3.19 trillion in May to CNY 3.43 trillion in June. Market analysts had expected a decrease in TSF to CNY 3.05 trillion.
Annual growth in M2—the broadest measure of money supply in China—was stable at May’s 11.1% in June. The result was in line with the figure that market analysts had expected.