China: New loans soar in June
July 15, 2016
New yuan loans totaled CNY 1.4 trillion (USD 210 billion) in June, which came in above the CNY 986 billion registered in the previous month. June’s print overshot the CNY 1.0 trillion the markets had expected and represented a five-month high. In the 12 months up to June, new yuan loans totaled CNY 12.7 trillion (May: CNY 12.6 trillion).
Total social financing—a broader measure of liquidity in the economy that includes loans, bonds and other non-traditional instruments—shot up from CNY 684 billion in May to CNY 1.6 trillion in June. The print represented a three-month high and exceeded the CNY 1.1 trillion that market analysts had expected.
Meanwhile, annual growth in M2—the broadest measure of money supply in China—stabilized at May’s 11.8% in June. The reading beat the 11.4% increase that analysts had anticipated.