http://www.bloomberg.com/news/2013-08-09/china-july-new-loans-money-supply-exceed-analyst-estimates.html
China’s broadest measure of new credit fell to a 21-month low as Premier Li Keqiang extended a campaign to curb a record expansion of lending that’s added risks to the nation’s financial system.
Aggregate financing was 808.8 billion yuan ($132 billion), the People’s Bank of China said in Beijing today, compared with the 925 billion yuan median estimate of analysts surveyed by Bloomberg News. New yuan loans exceeded forecasts and accounted for about 87 percent of the total, the most since September 2011. M2 money supply growth unexpectedly accelerated to 14.5 percent.
Policy makers are persisting with a crackdown on shadow banking following a government-engineered cash crunch in June even after a two-quarter economic slowdown. A report today showing faster gains in industrial output adds to evidence that growth is stabilizing after data yesterday showed exports rebounded more than estimated.
“Today’s overall outcome is a good one: Credit growth is slowing but real activity, including domestic demand and exports, are picking up,” said Wang Tao, chief China economist at UBS AG in Hong Kong.
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