Chinese banks scaled back lending in July after a surge in June, as the world's second-largest economy has shown more signs of recovering from the Covid-19 pandemic.
New yuan loans extended by Chinese lenders stood at 992.7 billion yuan ($142.8 billion) in July, down sharply from CNY1.81 trillion issued in June, data from the People's Bank of China showed Tuesday. The new loans were below a forecast of CNY1.275 trillion by economists polled by The Wall Street Journal.
Total social financing, an aggregated credit that includes bank and nonbank lending, stood at CNY1.69 trillion in July, well below June's CNY3.43 trillion, the PBOC data showed.
China's top policymakers signaled in recent weeks that they won't increase stimulus for the economy, which has already rebounded to a year-on-year increase in the second quarter from a sharp contraction during the coronavirus shocks in the first three months of the year.
The growth of M2, the broadest measure of money supply, also slowed to 10.7% in July, down from 11.1% in June and below economists' expectations of an 11.1% growth.
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08-11-20 0528ET
