China’s bank lending increased notably in January, data released by the People’s Bank of China revealed on Tuesday.
Banks extended a record CNY 3.58 trillion new loans in January. Economists had forecast the lending to rise to CNY 3.5 trillion from December’s CNY 1.26 trillion.
The broad money supply M2 climbed 9.4 percent annually.
January’s net new credit figures are usually the highest of the year, so this high level does not signify much, Sheana Yue and Mark Williams, economists at Capital Economics, said.
Credit is likely to decelerate as the PBoC focuses on reining in financial risks, the economists added. This will become a growing headwind to the economy in the second half of the year.
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