Total new lending by banks in China rose sharply in June to reach RMB1.28 trillion as the broadest measure of the money supply, M2, grew 11.8% as China’s central bank loosened policy to support the country’s economy, Reuters reported, citing figures from the People’s Bank of China. Li Huiyong, an economist at Shenyin and Wanguo Securities, said the June lending and money supply figures “are higher than market expectations, indicating recent government measures have gained traction to lift loan demands in the real economy.” The June loan data was announced a day before China unveils its second-quarter growth figure, which some economists expect to hit a six-year low of 6.9%.
China Economic Review