China's new yuan loans fell more than expected in July, as the central bank vowed not to flood the economy with excessive liquidity.
New yuan loans stood at 679 billion yuan ($100.7 billion) for July, less than a quarter of the amount of CNY2.81 trillion in June, the People's Bank of China said Friday. The amount of new loans also undershot the CNY1.10 trillion expected by economists polled by The Wall Street Journal.
Total social financing, a broader measure of credit that includes non-bank loans, reached CNY0.76 trillion in July, significantly lower than the CNY5.17 trillion extended in June, the PBOC said.
The People's Bank of China said in a quarterly report Wednesday that it won't flood the economy with excessive liquidity, implying that the central bank has noticed the relatively high money growth.
M2, the broadest measurement of money supply, rose 12% from a year earlier in July, higher than the 11.4% increase in June and the 11.5% expected by surveyed economists.
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(END) Dow Jones Newswires
August 12, 2022 06:40 ET (10:40 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.