China's July new lending drops to 532.8 bln yuan

New yuan-denominated lending in July fell to 532.8 billion (78.6 billion U.S. dollars) from 603.4 billion yuan in June, the People's Bank of China (PBOC), the central bank, said in a statement Wednesday.

The July figure brought new loans for the first seven months to more than 5.16 trillion yuan, compared with 7.73 trillion yuan during the same period last year.

The decline followed the central bank's controls over lending to local financial vehicles, the property sector and industries with overcapacity.

Total outstanding yuan-denominated loans stood at 45.14 trillion yuan at the end of July, up 18.4 percent year on year, said the statement on the PBOC website.

China's broad money supply (M2), which covers cash in circulation and all deposits, increased 17.6 percent year on year to 67.41 trillion yuan by the end of July. It marked a slowdown from the 18.5 percent increase at the end of June, according to the statement.

Narrow money supply (M1), cash in circulation plus current corporate deposits, climbed 22.9 percent from a year earlier to 24.07 trillion yuan, representing a decrease of 1.7 percentage points from the end of June.

Source: Xinhua