China’s new loans and overall credit rose by RMB 400 billion ($58.8 billion) less than analysts estimated last month, bolstering expectations that the central bank will have to further loosen monetary policy amid slowing economic growth, said Caixin.
China’s total social financing (TSF), the broadest official measure of credit and liquidity in the economy, grew by a net RMB 1.36 trillion in April, less than half the RMB 2.86 trillion increase the previous month, data from the People’s Bank of China (PBoC) showed Thursday.
New bank loans also missed expectations, and growth in M2, a measure of money supply, slipped slightly.
TSF is an indicator that includes bank lending and financing that exists outside the formal banking system, such as stock and bond sales, and shadow banking credit such as trust loans and bankers’ acceptance bills.
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