China's credit expansion beats market expectations

China reported stronger-than-expected credit expansion in June after the People's Bank of China, the country's central bank, cut policy benchmarks for interest rates last month.

The country's increment in aggregate social financing — the total amount of financing to the real economy — came in at 4.22 trillion yuan ($586 billion) in June, the PBOC said on Tuesday.

The figure was up by 2.67 trillion yuan compared with May and beat market expectations of 3.22 trillion yuan as polled by market tracker Wind Info, though was still down 985.9 billion yuan compared with the same period last year.

The PBOC also said China's new yuan-denominated loans totaled 3.05 trillion yuan in June, up 229.6 billion yuan year-on-year. June's figure surpassed market expectations polled by Wind at 2.38 trillion yuan.

China's outstanding aggregate social financing stood at 365.45 trillion yuan as of the end of last month, up 9 percent year-on-year. The growth rate, however, was down from 9.5 percent a month earlier.

The country's broad money supply, or M2, stood at 287.3 trillion yuan by the end of June, up by 11.3 percent from the year prior. The growth rate was down by 0.3 percentage points from a month earlier and 0.1 percentage point lower than the year before.