Financial regulators have provided China’s big state-owned banks with additional credit quotas in order to ease tighter monetary conditions arising from Beijing’s ongoing deleveraging campaign.
One source from a state-owned bank said to China Daily that it had obtained an additional credit quota from regulators to provide support to the non-financial sector, with funds scheduled to arrive by the end of June.
The amount is not included within the full-year lending quota that has already been approved. and is intended to help remedy the tighter monetary conditions that deleveraging measures have created in recent few months.
Another source from a big four state-owned bank also confirmed the provision of additional quotas by financial regulators.
Data from the Chinese central bank points indicates that total social financing, a broad measure of credit extended to the private sector, came in markedly under expectations in May at 780 billion yuan, or almost half the reading for April, as well as 302.3 billion yuan less than the reading for the same period last year.
As of the end of May the broad M2 money supply was 174.31 trillion yuan, for a year-on-year rise of 8.3%, as compared to consensus forecasts of 8.5%
