SHANGHAI, Oct 14 (Reuters) – Chinese banks extended 1.27 trillion yuan ($193.05 billion) in net new yuan loans in September, well above analysts’ expectations.
Analysts polled by Reuters had predicted new yuan loans of 1.1 trillion yuan, up from 1.09 trillion yuan in August.
Broad M2 money supply (M2) grew 9.2 percent in September from a year earlier, central bank data showed on Saturday, compared with the forecast for expansion of 8.9 percent, which would have been the same pace as in August.
Outstanding yuan loans at the end of September grew 13.1 percent from a year earlier, in line with an expected 13 percent rise and around level with the pace in August.
China’s banks extended a record 12.65 trillion yuan in loans in 2016 as the government encouraged credit-fueled stimulus to meet its economic growth target.
The credit explosion has stoked worries about financial risks from a rapid build-up in debt, which authorities have pledged to contain this year. But analysts say the campaign has seen mixed success so far as regulators have been wary of tapping on the brakes too hard and hurting economic growth. ($1 = 6.5785 Chinese yuan) (Reporting by Beijing Monitoring Desk; Editing by Richard Borsuk)
Sorry we are not currently accepting comments on this article.