China’s credit jumped much more than expected last month to the highest on record for June due to a strong rebound in bank lending and record government bond sales.
Aggregate financing, a broad measure of credit, reached 5.2 trillion yuan ($775 billion), the People’s Bank of China said Monday. That was the highest for any June in comparable data back to 2017 and beat the consensus estimate of 4.2 trillion yuan. Financial institutions made 2.8 trillion yuan of new loans in the month, also better than economists’ projection. The end of the lockdown of Shanghai in June may have contributed to the increase in borrowing demand.