China’s May new bank loans surge 1.89 trln yuan, much stronger than forecasts

BEIJING (Reuters) – Chinese banks extended 1.89 trillion yuan ($282.62 billion) in new yuan loans in May, rebounding sharply from April and beating analysts’ expectations as policymakers try to reverse a sharp, COVID-induced economic slump.

Analysts polled by Reuters had predicted new yuan loans would surge to 1.3 trillion yuan in May from 645.4 billion yuan the previous month and against 1.5 trillion yuan a year earlier.

Broad M2 money supply grew 11.1% from a year earlier, central bank data showed on Friday, above estimates of 10.4% forecast in the Reuters poll. M2 grew 10.5% in April from a year ago.

Outstanding yuan loans grew 11.0% in May from a year earlier compared with 10.9% growth in April. Analysts had expected 10.7% growth.

($1 = 6.6875 Chinese yuan renminbi)

(Reporting by Ella Cao, Judy Hua and Kevin Yao; Editnig by Kim Coghill)