China ramps up bank lending to counter slowdown

SHANGHAI (AFP) - China ramped up bank lending in August, according to central bank figures released on Tuesday, as the government seeks to give a boost to the slowing economy.

Chinese banks granted 703.9 billion yuan (S$137.2 billion) in new loans in August, up from 540.1 billion yuan in July, the People's Bank of China said in a statement.

The August figure is higher than market expectations of 600 billion yuan, according to a forecast of 13 economists surveyed by Dow Jones Newswires.

Analysts said the increase in bank lending reflects China's moves to ease monetary policy with economic growth at its slowest pace in three years.