Economics
China Credit Growth Exceeds Estimates as Lending Remains Robust
- Aggregate financing was 1.63 trillion yuan in December
- Broad M2 money supply increased by 11.3 percent, PBOC says
The economy ended last year on a strong note as producer prices rebounded, factory activity stabilized and corporate profit recovered.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s broadest measure of new credit expanded faster than expected, bringing the total of new loans extended last year to roughly equal the size of Italy’s $1.8 trillion economy.
The rapid pace of lending is at odds with recent pledges by policy makers to curb excessive borrowing and reduce risk in the financial system. The economy ended 2016 on a strong note as producer prices rebounded, factory activity stabilized and corporate profit recovered.