Bank lending in China rebounds to record level

Analysts polled by Reuters had forecast new yuan loans at 2.4 trillion yuan in June, up from 1.89 trillion yuan in May and 2.12 trillion yuan in the same month a year earlier.

Loans to households, including mortgages, rose to 848.2 billion yuan in June from 288.8 billion in May, while loans to businesses rose to 2.21 trillion yuan from 1.53 trillion in May, according to the data. of the central bank.

The increase in loans to households reflects the recent relaxation of the housing market, according to analysts.

Chinese banks made 13.68 trillion yuan in new loans in the first six months of 2022, the highest figure for the first half on record, according to data from the central bank.

The world’s second-largest economy has started to recover from supply shocks caused by extensive lockdowns since the second quarter, although headwinds to growth remain.

Central bank Governor Yi Gang has pledged to maintain an accommodative monetary policy to support the economy, in line with a cabinet package.

The broad M2 money supply grew 11.4% from a year earlier, its fastest pace since November 2016, versus the 11% expected in the Reuters survey and 11.1% a year ago.

Outstanding yuan loans rose 11.2% from a year earlier at the end of June. Analysts had expected growth unchanged from 11.0% in May.