China’s new bank loans picked up in May, overall credit growth slowed
DATA MACRO
China’s new bank loans picked up in May, overall credit growth slowed
DATA MACRO

China’s new bank loans picked up in May, overall credit growth slowed

 

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China’s new bank loans picked up in May from the previous month but the overall credit growth slowed and missed expectations.

New bank lending increased to 1.36 trillion yuan ($190.18 billion) in May, according to data released by the People’s Bank of China (PBOC) on Tuesday, up from 718.8 billion yuan in April but missed analysts’ estimates of 1.6 trillion yuan in a Reuters’ poll.

In breakdown, bank loans to the household sector including mortgage loans increased by 367.2 billion yuan in May, compared to a contraction of 241.1 billion yuan in April, while loans to the corporate sector rose to 855.8 billion yuan in May from 683.9 billion yuan in April, the data showed.

Broad M2 money supply grew 11.6% in May from a year earlier, slowing down from the 12.4% growth in the previous month and below the 12.1% forecast in a Reuters poll.

Growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, slowed to 9.5% in May from 10% in April.

TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

In May, TSF rose to 1.56 trillion yuan from 1.22 trillion yuan in April. Analysts had forecast TSF of 2 trillion yuan.