The 1.15 trillion yuan in loans given in May, are certainly down compared to 1.18 in April
Chinese banks donated 1.15 trillion yuan (about $ 179.7 billion) in new loans in May. Certainly down compared to 1.18 trillion yuan in April. On an annual basis, however, the figure rises by 40.5 billion yuan more than the same period last year, as stated by the People’s Bank of China in a statement.
The breakdown of data on May loans showed a recovery in household demand for credit, while that of non-financial corporations, government agencies and non-profit institutions decreased.
M2, the measure of the money supply that covers cash in circulation, is unchanged compared to April
As of the end of May, outstanding loans grew 12% over the previous year, reaching 132.89 trillion yuan.
The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, rose 6 percent year-on-year at the end of May, down from 7.2 percent at the end of April.
As regards instead total social finance increased by 760.8 billion yuan in May, more than halved from the April level and 302.3 billion yuan less than a year earlier. The total social finance is a broad measure of funds that non-financial firms and households get from the financial system.
Chinese banks extended a record 13.5 trillion yuan in new loans last year
The government’s goal is now an annual GDP growth of around 6.5% for 2018 and has planned to maintain moderate growth in M2, while ensuring a reasonable and stable level of liquidity.
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