BEIJING, Aug 15 (Reuters) - Chinese banks extended 825.5 billion yuan ($123.7 billion) in net new yuan loans in July, above analysts’ expectations.
Analysts polled by Reuters had predicted new yuan loans of 800 billion yuan, down sharply from 1.54 trillion yuan in June.
Broad M2 money supply (M2) in July grew 9.2 percent from a year earlier, central bank data showed on Tuesday, missing forecasts for an expansion of 9.4 percent and compared with June’s 9.4 percent.
Outstanding yuan loans at the end of July grew 13.2 percent from a year earlier.
Analysts polled by Reuters had expected outstanding loans to rise by 13 percent, after June’s 12.9 percent.
China’s banks extended a record 12.65 trillion yuan in loans in 2016 as the government encouraged credit-fueled stimulus to meet its economic growth target.
The credit explosion has stoked worries about financial risks from a rapid build-up in debt, which authorities have pledged to contain this year. ($1 = 6.6759 Chinese yuan) (Reporting by Cheng Fang and Kevin Yao; Editing by Jacqueline Wong)
Our Standards: The Thomson Reuters Trust Principles.