CHINESE banks made 702.5 billion yuan (US$114.55 billion) worth of new loans in August, quickening from the previous month and matching expectations, central bank data showed Friday.

    Economists polled by Reuters had expected new loans totaling 700 billion yuan in August, up from 385.2 billion yuan in July but trailing June’s 1.08 trillion yuan.

    Broad M2 money supply rose 12.8 percent in August from a year earlier, the People’s Bank of China said in a statement on its website, below 13.4 percent expected by economists.

    Outstanding yuan loans grew 13.3 percent from a year ago, slightly above a predicted 13.2 percent rise.

    The central bank also said China’s total social financing aggregate, a broad measure of liquidity in the economy, was 957.4 billion yuan in August, versus 273.1 billion yuan in July, which was the lowest in nearly six years.

    The unexpectedly weak July credit and financing figures had added to fears that a sustained economic recovery may be at risk in the second half of the year despite government efforts to shore up growth.

    (SD-Agencies)