Chinese New Yuan Loans Fell in May

As we expected, Chinese new yuan loans fell in May to 667.4 billion compared to 792.9 billion in April. This number was well below expectations.

 

More from Reuters:

 

Chinese banks lent 667.4 billion yuan ($109 billion) in new local currency loans in May, missing market expectations for 850 billion yuan and lower than April’s 792.9 billion yuan, central bank data showed on Sunday.

 

The broad M2 money supply rose 15.8 percent in May from a year earlier, the People’s Bank of China said in a statement on its website, www.pbc.gov.cn, slightly below a median forecast of 15.9 percent in a Reuters poll.

 

Outstanding yuan loans grew by 14.5 percent from a year earlier, below a Reuters poll forecast for a 14.8 gain.

 

China’s total social financing aggregate, a broad measure of liquidity in the economy, was 1.19 trillion yuan in May versus 1.75 trillion yuan in April.