China’s new yuan loans expand in September, M2 growth accelerates

2017-10-14
Xinhua

BEIJING — Chinese banks extended a forecast-beating amount of new loans in September while broad money supply growth also accelerated, buoyed by credit demand from the real economy.

New yuan-denominated lending in September hit 1.27 trillion yuan (about $192.8 billion), up from 1.09 trillion yuan in August, well above market expectations, central bank data showed on Oct 14.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, at the end of September rose 9.2 percent from a year earlier, accelerating from 8.9 percent recorded a month ago, the People’s Bank of China (PBOC) said in a statement on its website.

It marked the first time M2 growth has picked up in eight months, but the rate was still 2.3 percentage points lower from a year earlier.

Newly added total social financing, a broader measure of new credit in the economy, reached 1.82 trillion yuan in September, up from 1.48 trillion yuan in August.