2016.07.1511:50:00UTC+00China’s Broadest Measure of New Credit Rose Higher Than Expectation in June

The People’s Bank of China (PBoC) released its first half of 2016 monetary data earlier on Friday. Data showed that China's new Yuan Loan rebounded to RMB1.38 trillion from RMB985 billion in June, much higher than market expectation (RMB1trn). Total RMB loan outstanding rose 14.3 percent year-on-year to RMB101.49 trillion.

Data suggested the China's cash taps remain open as central bank policy makers seek to prop up economic growth. Authorities remain determined to keep old growth engines humming even at the cost of adding to debt risk.

Mortgage loans were the major driver of the loan growth, reflecting the boom of the housing market. The monthly household loan remains a rapid growth of RMB712 billion and the year to date household loan has recorded a 51 percent year-on-year increase compared to the first half of 2015.