According to the report from the People's Bank of China (PBoC), in February, Chinese banks provided new loans in yuan in the amount of 1.810 trillion yuan. Thus, credit growth slowed sharply compared to January (4.90 trillion yuan). However, it was the largest amount of new bank loans for a February month since at least 2004. Economists had expected lending to grow by 1.5 trillion yuan.
Meanwhile, total social financing decreased by 2.82 trillion yuan compared to January, to 3.16 trillion yuan. Consensus estimates suggested a drop to 2.2 trillion yuan. Growth of outstanding total social financing accelerated in February to 9.9% from 9.4% in January.
The PBoC said that in February, M2, the widest measure of money supply, rose by 12.9% per annum after increasing by 12.6% per annum in January. It was the fastest pace of increase in M2 money supply since March 2016, following China's reopening and Beijing's efforts to boost growth. Economists had expected a slowdown in M2 growth to 12.5% per annum. Outstanding loans in yuan increased by 11.6% per annum compared with an increase of 11.3% per annum in January. Consensus estimates suggested an increase of 11.4% per annum.