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China’s new yuan loans grow in June

Updated: Jul 12,2019 9:15 PM     Xinhua

BEIJING — China’s new yuan-denominated loans reached 1.66 trillion yuan (about $244 billion) in June, up from 1.18 trillion yuan in May, central bank data showed on July 12.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.5 percent year-on-year to 192.14 trillion yuan at the end of June, according to the People’s Bank of China.

The M2 growth was unchanged from the level at the end of May but was 0.5 percentage points faster than the same period last year.

The narrow measure of the money supply (M1), which covers cash in circulation plus demand deposits, rose 4.4 percent year-on-year to 56.77 trillion yuan by the end of last month.

M0, the amount of cash in circulation, increased 4.3 percent year-on-year to 7.26 trillion yuan by the end of June, according to the PBOC.

Newly-added social financing, a measurement of funds that individuals and non-financial firms get from the financial system, stood at 2.26 trillion yuan in June, compared with 1.4 trillion yuan one month earlier.

By the end of June, China’s total outstanding social financing rose 10.9 percent year-on-year to 213.26 trillion yuan.

The central bank will continue with its prudent monetary policy and conduct market operations in a flexible way to meet the liquidity need of financial institutions and create a sound environment for the real economy, said Sun Guofeng, head of the PBOC’s monetary policy department.

Sun also said the central bank will press ahead with market-oriented lending rate reform to improve banks’ loan prime rate (LPR) mechanism, adding that encouraging banks to use LPR more often is conducive to lowering the real interest rate.