(Bloomberg) -- China's credit expansion rebounded in June, as financial authorities signaled they may allow for looser credit policy with the economic recovery losing some steam.
- Aggregate financing was 3.67 trillion yuan ($566 billion), the People's Bank of China said Friday, jumping from 1.9 trillion yuan in May and higher than the 3.5 trillion yuan in the same month last year. The median estimate in a survey of economists was 2.89 trillion yuan
- Financial institutions offered 2.12 trillion yuan of new loans in the month, higher than the 1.5 trillion yuan in May and exceeding the estimate of 1.85 trillion yuan
Key Insights
- China' authorities had been guiding credit growth to trend lower since late 2020 as they sought to rein in financial risks, as the economy rebounded from the pandemic
- However, this week they indicated that more monetary stimulus is on the cards, prompting speculation that second quarter gross domestic product data, which is due next week, could be weaker than expected
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With assistance from Bloomberg
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