Mubasher: China’s new loans denominated in yuan (CNY) rose to a three-month peak in June as policymakers sought to maintain sufficient funds in the financial system to boost the slowing economic growth.

Chinese banks extended CNY 1.66 trillion ($241.743 billion) in net new loans last June, compared with CNY 1.18 trillion in May, as per shown by data released by the People’s Bank of China (PBoC) on Friday.

The M2, a broad gauge of money supply that covers circulated cash and all deposits, climbed by 8.5% year-on-year to CNY 192.14 trillion at the end of last month.

The narrower gauge of the money supply, M1, which includes cash in circulation and demand deposits, rose by 4.4% year-on-year to CNY 56.77 trillion by the end of last June.

Household loans, mainly mortgages, climbed to CNY 761.7 billion in June, compared with CNY 662.5 billion in May, while corporate loans jumped to CNY 910.5 billion from 522.4 billion.

Outstanding total social financing, a gauge of credit and liquidity in the economy, rose by 10.9% on year last month to CNY 213.26 trillion.