China March credit surges

Chinese banks extended more new loans in March than expected, adding to evidence that the country's economic recovery is being fuelled by ample credit conditions.

Chinese financial institutions issued 1.06 trillion yuan of local currency loans in March, an increase of 51.5 billion yuan from the previous month. In the first quarter, new yuan-denominated lending stood at 2.76 trillion yuan.

China's broadest measure of money supply, M2, rose 15.7 percent on year at the end of March, exceeding 100 trillion yuan for the first time. The growth is more than February's 15.2%. In the past 10 years, China's M2 has seen a sixfold increase. Funds outstanding for foreign exchange rose in February by 295.4 billion yuan, the third month in a row seeing an increase.