China's money supply growth in July rebounded to a five-month high and new yuan loans exceeded expectations as the People's Bank of China stepped up support for the economy amid trade tensions with the U.S.
The broad M2 money supply that covers cash in circulation and all deposits climbed 8.5% year over year to 177.62 trillion yuan at the end of July, slightly faster than the growth in June, Xinhua News Agency reported citing central bank data.
The narrower measure M1, which includes cash in circulation plus demand deposits, rose 5.1% year over year to 53.66 trillion yuan.
China's banks extended net new yuan loans worth 1.45 trillion yuan in July, up 627.8 billion yuan from July 2017. July's growth was down sharply from 1.84 trillion yuan recorded in June, but was consistent with the monthly average in the first half of about 1.5 trillion yuan, central bank data showed.
New loans to non-financial enterprises, government agencies and organizations stood at 650.1 billion yuan, while those extended to households, mainly for home purchases, came in at 634.4 billion yuan.
Outstanding yuan loans at the end of July rose 13.2% to 130.61 trillion yuan, compared to the 12.7% growth in June, reported Reuters.
As of August 13, US$1 was equivalent to 6.89 Chinese yuan.