Chinese banks issued 2.81 trillion yuan in new loans in June, which marks a month-on-month increase of 920 trillion yuan (49%) and a year-on-year increase of 690 billion yuan (33%).  As we have been stressing in our recent work, lending has been likely to increase as the central government continues to work to stimulate the economy. 

Also of note is outstanding loan growth came in at 11.2%, which marks the second straight month where growth has increased.  Prior to these last two months, outstanding loan growth had not increased since June 2021 — and as recently as in April, outstanding loan growth came in at 10.9%, which marked the lowest level seen in over ten years.  Overall, it remains very significant to us that the Chinese government is continuing to work to stimulate their economy while other governments are beginning to tighten.  As we have highlighted before, over sixty nations have so far raised interest rates this year, while two (China and Russia) have cut rates.