Chinese banks issued a higher-than-expected amount of new yuan loans in February, as Beijing moved to jumpstart economic growth after nearly three years of pandemic restrictions.
New yuan loans totaled 1.81 trillion yuan ($259.88 billion) in February, compared with the record CNY4.9 trillion issued in January, the People's Bank of China said Friday. Economists polled by The Wall Street Journal had forecast new yuan loans to be CNY1.4 trillion.
A sharp decline in February's lending was widely expected, as Chinese banks usually front-load loans at the beginning of the year to win market share.
China's total social financing was CNY3.16 trillion in February, according central bank's data.
China's M2, the broadest measure of money supply, rose 12.9% from a year earlier in February, compared with January's 12.6% increase and the 12.5% growth expected by surveyed economists.
PBOC Governor Yi Gang signaled earlier this month that the central bank could reduce the amount of deposits commercial banks have to set aside this year in a bid to unleash long-term funds to support the economy.
Liu Guoqiang, a vice PBOC governor, said last week that the central bank would refrain from either tightening or easing monetary policies dramatically.
Write to Singapore Editors at singapore.editors@dowjones.com
(END) Dow Jones Newswires
03-10-23 0406ET
