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BEIJING - Chinese bank lending jumped less than expected in June while some key money gauges hit new record lows, data showed on Friday, even as the central bank affirms a supportive monetary policy stance for the shaky economy.
The money and credit data, released by the People's Bank of China (PBOC), added to concerns over weak demand that is weighing heavily on the world's second-biggest economy as a prolonged property crisis curbs investment and sours consumer confidence.
Banks extended 2.13 trillion yuan ($293.55 billion) in new yuan loans in June, more than double the 950 billion yuan the previous month but less than 3.05 trillion yuan a year earlier.
Analysts polled by Reuters had predicted new yuan loans would jump to 2.25 trillion yuan in June.
The PBOC does not provide monthly breakdowns but Reuters calculated the June figures based on the bank's January-June data, compared with the Jan-May figure.
The PBOC said new yuan loans totalled 13.27 trillion yuan for the first half of the year.
Growth in broad M2 money supply slowed sharply in June to an all-time low of 6.2% versus a year earlier, below estimates of 6.8% forecast in the Reuters poll and 7.0% in May.
Central bank Governor Pan Gongsheng pledged last month to stick to a supportive monetary policy stance month and said the bank will use various policy tools including interest rates and reserve requirement ratios to create a good monetary and financial environment for economic development.
But Pan also said a slowdown in China's credit expansion is natural due to factors such as economic shifts and less lending to the property sector and local government financing vehicles (LGFVs).
With the housing market still in the doldrums and demand weak, the economy has not shown a meaningful rebound yet from the pandemic crisis, even though exports have been surprisingly strong.
Outstanding yuan loan growth slowed to 8.8% from a year earlier - the lowest on record - compared with 9.3% in May. Analysts had expected 9.0%.
Annual growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, also slowed to 8.1% in June - again a record low - from 8.4% in May.
China is due to publish its second-quarter gross domestic product growth and June activity data on July 15.
Investors and markets also are awaiting a key meeting of top leaders, known as the third plenum, to be held from July 15 to 18 to chart the course for medium- and long-term structural reforms.
Policy advisers believe China could unveil tax and fiscal changes that would funnel more tax revenues to debt-laden local governments to help ease pressure on their finances.
(Reporting by Kevin Yao, Ellen Zhang and Ziyi Tang; Editing by Kim Coghill)