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China June new bank loans beat expectations as Beijing steps on the gas

Published on Jul 15, 2014 11:37 AM

BEIJING (Reuters) - Chinese banks lent a much stronger-than expected 1.08 trillion yuan (S$215.9 billion) worth of new yuan loans in June as Beijing steps up efforts to stimulate the world's second-largest economy.

Markets had expected banks to write 915 billion yuan in new loans for the month, up modestly from May.

Broad M2 money supply jumped 14.7 per cent last month from a year earlier, the People's Bank of China said in a statement on its website on Tuesday, also higher than a forecast of 13.5 per cent in a Reuters poll of economists.

"While a fall in short-term lending rates hinted at a higher supply of funds during the month, the money swirling in the market reflects the urgency of the authorities to ramp up economic activity," said Chester Liaw, an economist at Forecast in Singapore.

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