BEIJING, July 13 (Reuters) - Chinese banks extended 1.84 trillion yuan ($274.91 billion) in net new yuan loans in June, beating analysts’ expectations.
Analysts polled by Reuters had predicted new yuan loans of 1.6 trillion yuan, up considerably from May’s 1.15 trillion yuan.
Broad M2 money supply grew 8.0 percent in June from a year earlier, central bank data showed on Friday, missing forecasts for an expansion of 8.3 percent and compared with 8.3 percent in May.
Outstanding yuan loans grew 12.7 percent from a year earlier, faster than an expected 12.5 percent rise and compared with a rise of 12.6 percent in May.
China’s banks extended a record 13.53 trillion yuan in new loans last year, up 7 percent from 2016, despite a government drive to reduce risks in the financial system from a rapid build-up in debt.
Last month China’s central bank announced the third reserve requirement ratio cut this year, in an effort to accelerate the pace of debt-for-equity swaps and spur lending to smaller firms.
But China’s economy is expected to have slowed slightly in the second quarter and is likely to experience a mild slowdown in the second half, as the government’s efforts to tackle debt risks crimp activity and a trade war with the U.S. threatens exports. ($1 = 6.6930 Chinese yuan) (Reporting by Kevin Yao and Cheng Fang; Editing by Sam Holmes)