China's bank lending increased in November despite measures taken by the government to curb credit growth, the People's Bank of China showed Monday.
New yuan loans totaled CNY 1.12 trillion, much bigger than the expected level of CNY 800 billion and October's CNY 663.2 billion.
The broad monetary aggregate M2 growth accelerated to 9.1 percent from a record low 8.8 percent posted in October.
The total social financing, a broad measure of credit and liquidity, climbed to CNY 1.6 trillion from CNY 1.04 trillion a month ago.
New lending jumped last month but this masks a further slowdown in underlying credit growth, Julian Evans-Pritchard, an economist at Capital Economics, said.
Despite the official rhetoric on the need to deleverage, the economist said the drag on economic activity from this slowdown in credit creation will eventually trigger a renewed round of monetary easing.
by RTT Staff Writer
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