China July new bank loans 385.2 bln yuan, well below forecast

BEIJING Wed Aug 13, 2014 3:49am BST

BEIJING Aug 13 (Reuters) - Chinese banks made 385.2 billion yuan ($62.53 billion) worth of new yuan loans in July, slowing sharply from the previous month and well below market forecasts, central bank data showed on Wednesday.

Banks had been expected to extend 727.5 billion yuan of new loans, according to a Reuters poll, down from 1.08 trillion yuan in June.

Broad M2 money supply rose 13.5 percent last month from a year earlier, the People's Bank of China said in a statement on its website, www.pbc.gov.cn, lower than the forecast 14.4 percent rise.

Outstanding yuan loans grew 13.4 percent from a year earlier versus forecasts for growth of 14.0 percent.

The central bank also said China's total social financing aggregate, a broad measure of liquidity in the economy, was 273.1 billion yuan in July, about one seventh of the 1.97 trillion yuan the month before.

Beijing stepped up efforts to re-energize China's economy in June, pumping more money into the system and pressing banks to extend more loans. Those steps and other stimulus measures earlier in the year appear to have offset the drag from a weakening property sector and sluggish exports, but analysts say more support may be needed to sustain a recovery. (1 US dollar = 6.1606 Chinese yuan) (China economics team; Editing by Kim Coghill)