Feb new loans 1.23 trln yuan vs f’cast 1.49 trln yuan

Money supply in February M2 +9.2% year on year, against an f’cast forecast of +9.5%

February TSF 1.19 trln yuan, against f’cast 2.22 trln yuan

C.bank maintains an accommodative policy to support growth

BEIJING, March 11 (Reuters) – New bank loans in China fell more than expected in February from a record high in January, even as the central bank maintains an accommodative policy to support the slowing economy.

Chinese banks extended 1.23 trillion yuan ($195 billion) in new yuan loans in February, down sharply 3.98 trillion yuan in January and below analysts’ expectations, according to data released Friday by the People’s Bank of China.

A pullback in loans in February was widely expected, as Chinese banks tend to preload loans at the start of the year to get better quality customers and gain market share.

Analysts polled by Reuters had predicted new yuan lending would fall to 1.49 trillion yuan in February. The new loans were lower more than 1.36 trillion yuan in February 2021.

Chinese Premier Li Keqiang said on Friday he was confident of achieving this year’s economic growth target despite headwinds including war in Ukraine, pledging to provide more political support over the a politically sensitive year.

China is aiming for slower economic growth of around 5.5% this year.

To boost growth, the central bank cut interest rates and the reserve requirement ratio (RRR) for banks, with further easing measures expected.

China has pledged to keep money supply and total social finance growth essentially in line with nominal economic growth this year.

M2 broad money supply rose 9.2% from a year earlier, according to central bank data, below estimates of 9.5% predicted in the Reuters poll. It increased by 9.8% in January.

Outstanding yuan loans increased 11.4% compared to the previous year, compared to growth of 11.5% in January. Analysts were expecting growth of 11.5%.

Growth in total stock of social finance (TSF), a broad measure of credit and liquidity in the economy, slowed down to 10.2% in February from a year earlier and from 10.5% in January.

The TSF includes forms of off-balance sheet financing that exist outside of the conventional bank lending system, such as initial public offerings, trust company loans, and bond sales.

In February, TSF dropped to 1.19 trillion yuan from 6.17 trillion yuan in January. Analysts polled by Reuters had expected a February TSF of 2.22 trillion yuan.

GRAPH – China Economic Trendshttp://tmsnrt.rs/2iO9Q6a

(Reporting by Judy Hua and Kevin Yao; Editing by Raju Gopalakrishnan)

(([email protected]; 8610-6627 1297; Reuters Mail: [email protected]))

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