China added RMB1.32 trillion in new RMB loans in January, up 23% compared to the same period last year, according to data released by the People’s Bank of China.
In December, new RMB loans stood at RMB483 billion.
Total social financing, a wider measure of overall credit growth, came in at RMB2.58 trillion in January, up RMB1.33 trillion compared to December, and up RMB39.9 billion compared to last January.
China’s M2 stood at RMB112.35 trillion at the end of January, up 13.2% year-on-year.
"Bank lending surged in January but this is a common occurrence at the beginning of
the year and we do not believe it reflects any shift in policy," writes Mark Williams, chief Asia economist at London-based research firm Capital Economics, in a report.
"On the contrary, with policymakers concerned about credit risks, we think that tight monetary conditions are probably here to stay and that this will continue to weigh on credit growth," he adds.