New lending in June beats estimates

China’s aggregate financing hit RMB1.97 trillion (US$317 billion) in June, Bloomberg reported, citing official data released on Tuesday. The broadest measure of new credit was higher than the median estimate of RMB1.425 trillion in a Bloomberg News survey of analysts. The central bank has cut reserve requirements for some financial institutions to spur lending and support economic growth. New local-currency loans were RMB1.08 trillion and M2 money supply grew 14.7%. China’s foreign-exchange reserves rose to US$3.99 trillion from US$3.95 trillion at the end of March. The central bank must ensure enough credit without resorting to broad-based loosening that may stoke financial risks.