Chinese monetary growth in June has come in above expectations.
New loan growth came in at 1.27 trillion yuan, easily exceeding the 900 million yuan figure of May and expectations for an increase to 1.05 trillion. In June 2014 total lending expanded by 1.08 trillion.
Complementing the beat in loans growth, broad money growth, or M2, expanded by 11.8%, exceeding the median market forecast for growth of 11% and 10.3% expansion seen in May.
Total social financing, the broadest measure of liquidity within the Chinese economy, also expanded strongly, growing to 1.86 trillion yuan from 1.22 trillion yuan in May.
As they have done for the past three quarters, China’s FX reserves, the largest of any nation globally, fell to $3.69 trillion from $3.73 trillion in the March quarter.
Having been lower earlier in the session, Chinese stocks have responded positively to the lending data with the benchmark Shanghai Composite index currently higher by 0.63%.
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