In August this year, Chinese banks issued a greater-than-expected RMB 703.9 billion ($111.1 billion) in new RMB-denominated loans, as announced by China’s central bank on Tuesday, September 11. This compares to the figure of RMB
540.1 billion for July of the current year. The August lending data come after recent interest rate cuts by the Chinese central bank
Meanwhile, in August China’s total social financing, a broad measure of liquidity in the domestic economy, rose to RMB 1.24 billion ($195.696), up from RMB 1.04 trillion in July. In addition, M2 broad money supply in China rose by 13.5 percent year on year in August, less than forecasts for a 14 percent increase.
China’s central bank has cut interest rates twice in June and July and has also reduced domestic banks' reserve requirement ratio by 150 basis points in three steps since November last year. However, such measures so far appear to have failed to halt the slide in the country’s economic growth.