Chinese banks extended RMB1.22 trillion in new loans in September, a three-month high and well above expectations, while money supply growth edged up, indicating the central bank is keeping policy accommodative to support economic growth. The central bank has pledged to keep policy slightly loose, but recent data has suggested many Chinese companies are hoarding cash rather than investing it, adding to views that further central bank easing would not be as effective in spurring the economy as in the past, according to the South China Morning Post. Broad M2 money supply grew 11.5% in September from a year earlier, the People’s Bank of China said on Tuesday, slightly below forecasts but up from August’s 11.4% rise.
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