China Oct new bank loans fall to 689.8 bln yuan, below estimates

BEIJING, Nov 11 (Reuters) - Chinese banks extended 689.8 billion yuan ($104.42 billion) in new yuan loans in October, down sharply from September and below analysts’ expectations.

Analysts polled by Reuters had predicted new yuan loans would fall to 800 billion yuan in October, from 1.9 trillion yuan in September, but would be slightly more than 661.3 billion yuan in the same month last year.

Broad M2 money supply in October grew 10.5% from a year earlier, central bank data showed on Wednesdady, lagging estimates of 10.9% forecast in the Reuters poll, the same pace as in September.

Outstanding yuan loans grew 12.9% from a year earlier, easing from a 13.0% rise in September. Analysts had expected 13.0% growth.

People’s Bank of China (PBOC) Governor Yi Gang has said new loans are likely to hit a record of nearly 20 trillion yuan this year, as policymakers look to reboot the world’s second-largest economy after a record coronavirus-induced slump. ($1 = 6.6058 Chinese yuan renminbi) (Reporting by Kevin Yao and Lusha Zhang, editing by Louise Heavens)