Chinese banks have issued a higher-than-expected amount of new yuan loans in June, indicating further signs of a slowdown in the world’s second-largest economy.
According to data released on Tuesday by the People’s Bank of China, new bank loans reached 3.05 trillion yuan ($421.76 billion) in June, surpassing the 1.36 trillion yuan issued in May. This figure also exceeded the expectations of economists surveyed in a Wall Street Journal poll, who had predicted 2.55 trillion yuan.
In addition to the increase in new bank loans, total social financing, which includes nonbank loans, amounted to 4.22 trillion yuan in June. This marked a significant increase from the 1.56 trillion yuan recorded in May.
To stimulate borrowing from households and businesses amidst slowing economic growth in the second quarter, China’s central bank had reduced its benchmark lending rates in June.
Furthermore, M2, the broadest measure of money supply, witnessed an 11.3% rise in June compared to the previous year. Although this figure was slightly lower than May’s 11.6% increase, it exceeded the 11.2% expectation of surveyed economists.
