Chinese banks’ new yuan loan issuance for May missed market expectations as the economy’s post-pandemic recovery lost steam, official data showed Tuesday.
Lenders issued 1.36 trillion yuan ($190.33 billion) worth of loans, according to data released by the People’s Bank of China. That was lower than the CNY1.62 trillion expected by economists surveyed by The Wall Street Journal and also CNY541.8 million less than the amount extended at the same time last year.
Total social financing, a broader credit metric that includes non-bank loans, stood at CNY1.56 trillion in May, up from CNY1.22 trillion in April, said the central bank.
M2, the broadest measurement of money supply, rose 11.6% on year in May, slowing from April’s 12.4% expansion and the 12.0% growth anticipated by the economists surveyed.
The weak credit data came after the central bank lowered a key policy rate earlier Tuesday, which could pave the way for a cut to the nation’s benchmark loan rates.
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