BEIJING, June 12 (Xinhua) -- China's credit growth picked up in May as new bank loans rebounded thanks to increasing policy support.
China's new yuan-denominated loans reached 1.18 trillion yuan (170.5 billion U.S. dollars) in May 2019, 31.3 billion yuan more than the same period last year, central bank data showed Wednesday.
The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.5 percent year on year to 189.12 trillion yuan at the end of May.
Household loans rose to 662.5 billion yuan in May from 525.8 billion in April, while corporate and organization loans expanded to 522.4 billion yuan.
China also saw quickened outstanding total social financing (TSF) growth, which broadly measures the economy's credit and liquidity conditions. The TSF balance rose 10.6 percent in end-May, 0.2 percentage points faster than that in April.
The improved credit growth came after an official guideline released in April, which pledged more measures to address financing difficulties for small and medium-sized enterprises, including the creation of more financing channels.
The People's Bank of China announced last month to apply a low reserve requirement ratio for some small and medium-sized banks in a phased manner in its latest efforts to support local business activities.