New Bank Loans Soar in January, Nearly Exceed TSF Peak Month

New bank loans in China nearly exceeded the peak months for total social financing (TSF) last month. New banks loans were ¥2.5 trillion yuan, and the peak month for TSF was ¥2.6 trillion in January 2014.

BI Australia: Chinese banks just lent more money than ever before
According to the People’s Bank of China (PBOC), new bank lending jumped to 2.51 trillion yuan in January, the largest monthly increase since records began in January 2004.

While lending by Chinese banks tends to be front-loaded each year, few were expecting an increase of this magnitude. Underlying this point, the figure easily exceeded the 1.8 trillion yuan increase that had been forecast by economists. It was also nearly five-times larger than the 597.8 billion increase registered previously in December.
Even more impressive is the lending exceeded the peak months in 2009, when the government launched its massive stimulus package.

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