China's new yuan loans expand, M2 growth quickens

Source: Xinhua| 2018-05-11 20:55:14|Editor: ZX
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BEIJING, May 11 (Xinhua) -- Chinese banks extended 1.18 trillion yuan (about 184.4 billion U.S. dollars) in new yuan-denominated loans in April, more than market forecasts, and edging up from the previous month, central bank data said Friday.

The figure was 79.7 billion yuan more than the same period last year, the People's Bank of China said in a statement.

Breakdown of the April loan data showed a slight pick-up in demand for credit from non-financial enterprises, government agencies and non-profit institutions, while that from households dipped.

Wen Bin with China Minsheng Bank said the data revealed high financing demand from the real economy sector.

As of the end of April, outstanding yuan loans grew 12.7 percent from a year earlier to 126.16 trillion yuan.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, grew 8.3 percent year on year, slightly up from the 8.2-percent rise registered a month earlier.

The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, rose 7.2 percent year-on-year at the end of April, up from 7.1 percent at the end of March.

Total social finance, a broad measure of funds that non-financial firms and households get from the financial system, increased by 1.56 trillion yuan in April, 172.5 billion yuan more than a year earlier.

Chinese banks extended a record of 13.5 trillion yuan in new loans last year, up from 12.6 trillion yuan in 2016.

The government targeted annual GDP growth of around 6.5 percent for 2018, and planned to maintain moderate growth in M2 while ensuring a reasonable and stable level of liquidity.