BEIJING — China’s broadest measure of money supply was much higher than expected in April as the central bank provided more liquidity to further support the slowing economy.
M2 rose 10.5% in April from a year earlier, beating March growth of 9.7% and market expectations of 9.9%, according to data released Friday by the People’s Bank of China. .
Chinese lenders extended 645.4 billion yuan ($95.1 billion) in new yuan loans in April, significantly lower than the 3.13 trillion yuan in March and the 1.52 trillion yuan forecast by economists polled by the Wall Street Journal.
“Growth of new yuan loans slowed significantly in April and was lower than the same period last year,” a central bank statement said. Small and medium enterprises are experiencing increased operational difficulties and the demand for effective financing has dropped significantly, according to the statement.
Total social finance, a broader measure of credit that includes loans from non-bank financial institutions, was CNY 910.2 billion in April, down from CNY 4.65 trillion in March, according to official data.
China plans to stabilize credit supply and reduce financing costs in a next step, and will further encourage financial institutions to lower real interest rates on loans and reduce fees, according to the statement. PBOC.
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