China June new bank loans rise to 1.66 trln yuan, below forecasts

Chinese banks extended 1.66 trillion yuan ($241.35 billion) in net new yuan loans in June, up from May but still falling short of analyst expectations. Analysts polled by Reuters had predicted new yuan loans would rise to a 5-month high of 1.7 trillion yuan in June, up from 1.18 trillion yuan in the previous month.

Broad M2 money supply in June grew 8.5% from a year earlier, central bank data showed on Friday, below estimates of 8.6% forecast in the Reuters poll. Outstanding yuan loans grew 13% from a year earlier. Analysts had expected 13.4% growth, unchanged from May's rate.

Despite a flurry of growth-boosting measures since last year, domestic demand in China has remained sluggish, while escalating U.S.-China trade tensions weigh on its exporters. ($1 = 6.8781 Chinese yuan renminbi)