New yuan loans fall sharply
China’s new yuan loans dropped sharply last month, the central bank said, citing seasonal factors and a high comparison base.
New yuan loans fell to 385.2 billion yuan (HK$485 billion) after surging to 1.08 trillion yuan in the previous month, the People’s Bank of China said.
Economists surveyed by Reuters had expected 727.5 billion yuan worth of new yuan loans.
Social financing plunged to 273.1 billion yuan last month from 1.97 trillion yuan in June.
“Credit supply and social financing growth remained in a reasonable range,” the PBOC said in a statement. It said July has historically been a period of slow credit growth.
The PBOC said its monetary stance would stay unchanged, as the central bank would continue to improve the structure of credit while keeping general supply stable.
M2, a broad gauge of money supply, rose 13.5 per cent from a year earlier.