China’s new RMB loans picked up to RMB1.27 trillion in June, up from RMB900 billion in May, beating market expectations as a result to recent monetary easing measures, according to data released by the People’s Bank of China.
During the first six months, new RMB loans totaled RMB6.56 trillion, compared with RMB5.7 trillion for the same period last year.
Total social financing aggregate, a broad measure of liquidity in the economy, also rose to RMB1.86 trillion in June, much higher than RMB1.22 trillion recorded in May.
M2 growth rebounded to 11.8% in June, compared with 10.8% in the prior month, as China’s central bank continued to inject liquidity into the market.
China’s foreign exchange reserves declined to US$3.69 trillion by the end of June, from US$3.73 trillion at the end of the first quarter.
"As M2 growth remains below this year’s target of 12%, the People’s Bank of China will have to maintain an accommodative policy (during the second half)," says a research report by ANZ.