What Rate Hikes? Loan Growth Still Marching Higher In China

china market

No matter how many times they hike interest rates in China, the money is still loose and free. This year alone they’ve raised them three times. And yet…

Via Shanghai Daily:

China’s new yuan-backed loans totaled 633.9 billion yuan (US$98 billion) in June, up 20.7 billion yuan from a year ago, the People’s Bank of China said today.

That means loans are also up from May’s 551.6 billion yuan figure. As we’ve pointed out on this site, Chinese loans can be murky business and are hard to track anyway, so this number could be quite conservative. Additionally, broad monetary supply (M2) is up 15.9% from a year ago and 0.7% from May.

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