Chinese Banks Issued Higher-Than-Expected New Yuan Loans in December

Chinese banks issued higher-than-expected new yuan loans in December, as Beijing pivoted to supporting economic growth after Covid-19 infections roiled the country in the wake of an abrupt reopening.

New yuan loans stood at 1.4 trillion yuan ( $206.72 billion) in December, higher than the CNY1.2 trillion issued in November, the People's Bank of China said Tuesday. Economists polled earlier by The Wall Street Journal had expected new yuan loans to be at CNY1.1 trillion in December.

China's total social financing stood at CNY1.31 trillion in December, suggesting non-bank credit shrank in the month, according to the data released by the central bank.

China's M2, the broadest measure of money supply, rose 11.8% from a year earlier in December, lower than 12.4% in November and the 12.2% increase expected by surveyed economists.

The PBOC also said it started to include digital yuan in circulation in its M0, which means currency in circulation, from December. At the end of December, China's digital yuan in circulation stood at CNY13.61 billion and M0 rose 15.3% from a year earlier, according to data released by the PBOC.

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(END) Dow Jones Newswires

01-10-23 0453ET