BEIJING–New loans issued by Chinese banks in August rose slightly from the previous month, but came lower than consensus views. The August reading was higher from a year earlier, indicating that the country’s central bank is seeking to boost the economy, as recovery has lost steam in recent months.
Chinese banks extended 1.22 trillion yuan ($188.99 billion) in new yuan loans last month, up from CNY1.08 trillion in July, according to data released by the People’s Bank of China on Friday. Economists polled by The Wall Street Journal had forecast new loans of CNY1.35 trillion. New yuan loans issued by Chinese banks in August were up CNY 60 billion from a year earlier.
In a separate statement, the PBOC said total social financing–a broader credit measure that includes financing offered by non-bank institutions–rose to CNY 2.96 trillion from CNY1.06 trillion in July.
Total social financing consists of all manner of financing, including banks, trusts, financing companies, trade credit, corporate bonds, certain kinds of interbank lending and informal lending by individuals, among other kinds of credit.
Data for M2–the broadest measure of money supply–also came in below expectations, expanding 8.2% in August. That compares with 8.3% in July and the 8.4% rise forecast in the WSJ poll.
Although the market has expected more policy support to boost the coronavirus-hit economy in recent weeks, Pan Gongsheng, vice governor at China’s central bank, reiterated that Beijing will maintain prudent monetary policy and won’t resort to flood-like stimulus.
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