China Banks Sharply Scale Back Lending in February
BEIJING--Chinese banks extended 839.3 billion yuan ($132.4 billion) of new yuan loans in February, down sharply from a record high of 2.9 trillion yuan in January, data from the People's Bank of China showed Friday.
Newly extended loans in February were slightly above the median 800 billion yuan estimate of 11 economists polled earlier by The Wall Street Journal.
Total social financing, a broader measurement of credit in the economy that includes bonds and trusts, came in at 1.17 trillion yuan in February, down sharply from 3.06 trillion yuan in January.
China's broadest measure of money supply, M2, grew 8.8% at the end of February from a year earlier, compared with an 8.6% increase at end of January. It was largely in line with economists' median expectations of an 8.7% gain.
Starting this year, the central bank adjusted the calculations of M2 by including money market funds held by non-financial sectors, a move that could help M2 growth modestly, economists have said.
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