November 13, 2018 / 9:02 AM / a month ago

China Oct new loans fall to 697 bln yuan, well below forecasts

BEIJING, Nov 13 (Reuters) - Chinese banks extended 697 billion yuan ($100.23 billion) in net new yuan loans in October, much less than analysts had expected and down sharply from the previous month.

Analysts polled by Reuters had predicted new yuan loans of 862 billion yuan in October, a traditionally weaker month due to long holidays, down from 1.38 trillion yuan in September.

Broad M2 money supply grew 8.0 percent in October from a year earlier, also missing forecasts, central bank data showed on Tuesday. Analysts had expected M2 to rise 8.4 percent, compared with 8.3 percent for September.

Outstanding yuan loans grew 13.1 percent from a year earlier, below expectations and easing from September’s rise.

New bank loans in the first 10 months of 2018 totalled 13.84 trillion yuan, eclipsing last year’s full-year record of 13.53 trillion yuan.

The People’s Bank of China has cut banks’ reserve requirements four times this year, with the latest cut taking effect on Oct. 15, injecting more liquidity to encourage banks to continue lending to support the slowing economy. ($1 = 6.9538 Chinese yuan renminbi) (Reporting by Beijing Monitoring Desk; Editing by Kim Coghill)

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