According to the report from the People's Bank of China (PBoC), in May, Chinese banks provided new loans in yuan in the amount of 0.620 trillion yuan. Therefore, credit growth accelerated sharply compared to April (0.280 trillion yuan) as encouraging monetary measures and a trade truce between Beijing and Washington boosted borrower confidence. Economists had expected lending to grow by 0.85 trillion yuan.
Meanwhile, total social financing grew by 2.290 trillion yuan, compared with an increase of 1.160 trillion yuan in April. Consensus estimates suggested an increase of 2.300 trillion yuan.
The PBoC said that in May, M2, the widest measure of money supply, rose by 7.9% per year after increasing by 8% in April. Economists expected growth of 8.1%. Outstanding loans in yuan rose by 7.1% per year (the lowest increase on record) compared with +7.2% per year in April. Consensus estimates suggested an increase of 7.2% per annum.