May Lending in China Accelerates Faster Than Expected

Lending in China accelerated more than expected in May, boosted by a gradual resumption of production that was disrupted by Covid lockdowns in some parts of the country. Loan growth in April was the lowest in almost five years.

Banks extended 1.89 trillion yuan ($281.7 billion) of new yuan loans in May, an increase of 392 billion yuan from the same period last year and nearly triple the April low, according to data released Friday by the People’s Bank of China. Bank lending beat the 1.36 trillion yuan projected by economists in a Caixin survey.