According to the report from the People's Bank of China (PBoC), in February, Chinese banks provided new loans in yuan in the amount of 1,450 trillion yuan. Thus, credit growth slowed sharply compared to January (4,920 trillion yuan, a record high since comparable records began in 2004). Economists had expected lending to grow by 1.5 trillion yuan.
Meanwhile, total social financing grew by 1.558 trillion yuan compared to an increase of 6.5 trillion yuan in January (a record high). Consensus estimates suggested an increase by 2.22 trillion yuan.
The PBoC said that in February, M2, the widest measure of money supply, rose by 8.7% per annum after a similar increase in January. Economists had expected growth of 8.8%. Outstanding loans in yuan rose by 10.1% per annum, slowing compared to January (+10.4%) and falling below economists' forecasts (+10.2%).
Earlier today, China's central bank left a key policy rate unchanged, as authorities continued to prioritize currency stability amid uncertainty over the timing of expected Fed interest rate cuts.