China's Yuan Loan Issuance Rose Above Expectations in May

BEIJING--New loans issued by Chinese banks rose slightly in May, beating consensus views and indicating that the country's central bank is maintaining support for virus-hit businesses amid cooling credit growth.

Chinese banks extended 1.50 trillion yuan ($234.70 billion) in new yuan loans last month, up from CNY1.47 trillion in April, according to data released by the People's Bank of China on Thursday. Economists polled by The Wall Street Journal had forecast a sum of CNY1.45 trillion.

In a separate statement, the PBOC said total social financing--a broader credit measure that includes financing offered by nonbank institutions--rose to CNY1.92 trillion versus April's CNY1.85 trillion.

Data for China's M2--the broadest measure of money supply--also came in slightly above expectations, expanding 8.3% in May. That compares with the 8.1% pace recorded the previous month and the 8.1% rise forecast in the WSJ poll.

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(END) Dow Jones Newswires

06-10-21 0459ET