China Sept new bank loans beat forecast in sign that demand for credit is picking up

Chinese banks made 857.2 billion yuan (S$177.85 billion) worth of new loans in September, data showed on Thursday, beating market expectations in a sign that demand for credit is picking up. -- PHOTO: REUTERS
Chinese banks made 857.2 billion yuan (S$177.85 billion) worth of new loans in September, data showed on Thursday, beating market expectations in a sign that demand for credit is picking up. -- PHOTO: REUTERS

BEIJING (Reuters) - Chinese banks made 857.2 billion yuan (S$177.85 billion) worth of new loans in September, data showed on Thursday, beating market expectations in a sign that demand for credit is picking up.

Economists polled by Reuters had expected new loans totalling 730-735 billion yuan last month, an increase from 702.5 billion yuan in August.

Broad M2 money supply rose 12.9 per cent in September from a year earlier, the People's Bank of China said in a statement on its website, in line with market expectations.

Outstanding yuan loans grew 13.2 per cent from a year earlier, in line with expectations.

The central bank also said China's total social financing aggregate, a broad measure of liquidity in the economy, was 1.05 trillion yuan in September, versus 957.4 billion yuan in August.

China's foreign exchange reserves, the world's largest, fell slightly to US$3.89 trillion at the end of September from US$3.99 trillion at the end of June, central bank data showed.