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China's new yuan loans continue to rise

By Wang Yanfei | chinadaily.com.cn | Updated: 2017-07-12 17:03

The head of the People's Bank of China's Survey and Statistics Department has revealed the nation's new yuan loans in June have continued to increase supporting economic growth, while the money supply has grown at the slowest pace on record as regulators enhanced efforts to contain excessive borrowing.

"Credit growth increased at a proper level in June, reflecting the fact the financial sector has not ceased efforts in supporting economic activities," Ruan Jianhong said on Wednesday.

She added China's banks issued a total of 1.54 trillion yuan of new loans in June.

"Broad M2 money supply grew 9.4 percent from a year earlier, compared with May's 9.6 percent," Ruan said.

"There should not be too much reading into the slow growth of money supply."

She added the slower M2 growth could actually be the "new normal".

The newly added total social financing (TSF) – another significant financing gauge – attained 1.78 trillion yuan in June, Ruan said.

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