China April bank lending seen moderating, policy support still on track: Reuters poll

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China April bank lending seen moderating, policy support still on track: Reuters poll
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New bank loans in China likely pulled back in April from strong levels the previ...

BEIJING - New bank loans in China likely pulled back in April from strong levels the previous month, but may still outpace the historical trend as the central bank keeps up efforts to support cash-strapped smaller companies, a Reuters poll showed.

While April lending levels have tended to moderate from March in past years, investors are closely watching trends for any signs that policymakers are turning more cautious about additional stimulus measures. The People’s Bank of China said on Monday it will cut reserve requirement ratios for some small and medium-sized banks, in the latest in a series of moves specially tailored to help small firms struggling amid the economic slowdown.

Broad M2 money supply was seen rising 8.5 percent on-year, a notch down from March.TSF, a broad measure of credit and liquidity in the economy, was estimated to have dropped to 1.7 trillion yuan in April from 2.86 trillion in the previous month, as local government special bond issuance slowed after a rush in the first quarter.

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