China's new lending in June rises to 2.1t yuan, household loans climb to 868.5b yuan

China's new bank loans increased more than expected in June from the previous month, while broad credit growth also picked up substantially, Reuters reports. 

Chinese banks extended 2.12 trillion yuan (US$327 billion) in new yuan loans in June, up from 1.5 trillion yuan the previous month, data from the People's Bank of China showed on Friday.

Loans to households climbed to 868.5 billion yuan in June from 623.2 billion yuan in May, while corporate loans surged to 1.46 trillion yuan from 805.7 billion yuan in May.

In June, total social financing (TSF), a broad measure of credit and liquidity in the economy, increased to 3.67 trillion yuan from 1.92 trillion yuan in May and substantially higher than analysts' forecasts of 2.87 trillion yuan.

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.

The outstanding TSF increased by 11 perent to 301.56 trillion yuan (US$46.49 trillion) at the end of June from a year earlier.

Broad M2 money supply grew by 8.6 percent from a year earlier, also above estimates of 8.2 percent forecast in the Reuters poll.

M2 grew by 8.3 percent in May from a year ago.

Outstanding yuan loans grew by 12.3 percent from a year earlier, picking up from 12.2 percent growth in May. Analysts had expected 12.1 percent growth.