China bank lending hits record $1.73 trillion in first half after solid June

Reuters reports that new bank lending in China rose 22.3% in June from May as authorities continued to boost credit and ease policy to get the world's second-largest economy humming again after a sharp coronavirus-induced contraction.

Chinese banks extended 1.81 trillion yuan (£205.11 billion)in new yuan loans in June, up from 1.48 trillion yuan in May and slightly exceeding analysts' expectations, according to data released by the People's Bank of China (PBOC) on Friday.

That pushed bank lending in the first half of this year to a record 12.09 trillion yuan, beating a previous peak of 9.67 trillion yuan in the first half of 2019, the data showed. Analysts polled by Reuters had predicted new yuan loans would rise to 1.80 trillion yuan in June.

The monthly tally was 9% higher than 1.66 trillion yuan a year earlier. While lending in China typically picks up in June, analysts say policymakers want to maintain strong credit growth until the economy gets back on solid footing.

Household loans, mostly mortgages, rose to 978.8 billion yuan in June from 704.3 billion yuan in May, while corporate loans rose 927.8 billion yuan from 845.9 billion yuan, according to Reuters calculation based on the central bank data.