BEIJING – New loans issued by Chinese banks in September increased from the previous month, but were lower than consensus views and declined from the previous year, indicating that the central bank is seeking to strike a balance between maintaining its prudent monetary policy and strengthening the sluggish economy.
Chinese banks granted 1.66 trillion yuan ($ 257.41 billion) in new yuan loans last month, up from CNY 1.22 trillion in August, according to data released Wednesday by the People’s Bank of China. Economists polled by the Wall Street Journal had forecast new loans of CNY 1.90 trillion. New yuan loans issued by Chinese banks in September were down CNY 232.7 billion from the previous year.
In a separate statement, the PBOC said total social finance – a broader measure of credit that includes funding offered by non-bank institutions – fell to CNY2.90 trillion last month from CNY2.960 billion. in August.
Total social finance includes all kinds of finance, including banks, trusts, finance companies, trade credit, corporate bonds, some types of interbank loans, and informal loans by individuals, among other types of credit. .
Data for M2 – the broadest measure of money supply – exceeded economists’ expectations, rising 8.3% in September. That compares to 8.2% in August, which was also the same forecast in the WSJ poll.
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