China New Yuan Loans Top Forecasts; Forex Reserves Shrink

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China’s new loans exceeded estimates in June, boosting odds the government will secure an economic rebound after growth probably slowed for a sixth quarter.

Banks extended 919.8 billion yuan ($144.3 billion) of local-currency loans, the People’s Bank of China said yesterday. That compares with the 880 billion yuan median forecast in a Bloomberg News survey. Foreign-exchange reserves fell to $3.24 trillion at the end of June, the central bank said, a record quarter-to-quarter drop.