POLL-China's new yuan loans seen higher in September

* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=CNMSM2%3DECI money supply poll data

* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=CNNYL%3DECI new loans poll data

* Sept new loans seen at 1.7 trln yuan vs 1.28 trln yuan in Aug

* Sept money supply growth seen at 10.4% y/y, vs 10.4% in Aug

* Sept TSF seen at 3.15 trln yuan vs 3.58 trln yuan in Aug

* Loans, money supply data due Oct. 10-15

BEIJING, Oct 9 (Reuters) - China’s banks are expected to have stepped up lending in September, although other forms of credit growth were likely stable with Beijing pledging a targeted approach to monetary policy as the economy emerges from the coronavirus crisis.

Lenders likely extended 1.7 trillion yuan ($253.28 billion) in net new yuan loans last month, compared with 1.28 trillion yuan in August, according to the median estimate in a Reuters poll of 15 analysts.

The forecast would be largely in line with the 1.69 trillion yuan seen a year earlier.

Broad M2 money supply growth in September was seen at 10.4%, matching previous month’s pace.

Annual outstanding yuan loans were expected to grow 12.9% for September, a tad slower than August’s 13% gain.

While China’s central bank stepped up support earlier this year in response to the coronavirus pandemic, it has more recently held off on further easing as the economy’s recovery maintains pace.

“We expect credit growth to remain largely stable in September, as Beijing appears to maintain its wait-and-see policy approach in recent months by neither easing further nor tightening,” analysts with Nomura said in a research note.

Recent economic data showed the world’s second-largest economy has steadily recovered from a virus-induced slump, but analysts say policymakers face a tough job sustaining stable expansion over the next few years.

China kept its benchmark lending rate for corporate and household loans steady for the fifth straight month at its September fixing, as expected.

In September, the total social financing (TSF), a broader measure of credit and liquidity, was expected to have fallen slightly to 3.15 trillion yuan, from 3.58 trillion yuan in August.

Analysts with Morgan Stanley expected the number was mainly driven by stronger government bond financing. Chinese local governments were asked to complete the issuance of special bonds by end-October.

They also noted recent policy tightening on property developers’ financing may have outweighed improving loan demand from consumers and exporters.

China’s regulators have since August tightened scrutiny on property developers in an effort to tackle unbridled borrowing in the sector to curb debt risks.

China’s leaders are poised to endorse a lower economic growth target for Beijing’s next five-year plan, Reuters reported last week citing sources, as authorities navigate a deepening rift with the United States. ($1 = 6.7119 Chinese yuan) (Reporting by Lusha Zhang and Ryan Woo; Editing by Sam Holmes)