China Oct new yuan loans below forecasts, down sharply from September

Chinese banks extended fewer loans in October as authorities pledged to prevent asset bubbles in the increasingly debt-fueled economy. Data released by the central bank showed on Friday that Chinese banks extended 651.3 billion yuan ($95.56 billion) in net new yuan loans in October, below expectations for 700 billion yuan.

New yuan loans in October was sharply lower compared to 1.22 trillion yuan in September. New bank loans totalled 10.8 trillion yuan in the first 10 months of the year - a record high, according to Reuters calculations based on central bank data.

China's central bank said this week that it will maintain ample liquidity in the economy while taking steps to prevent asset bubbles, adding that the balance between stabilising growth and preventing bubbles has become more challenging.

M1 money supply, which includes cash and short-term deposits, rose 23.9 percent in October from a year earlier, compared to September's 24.7 percent rise. The broader M2 money supply grew 11.6 percent from a year earlier, central bank data showed on Friday, slightly above forecasts. Gap between M1 and M2 narrowed to 12.3 percentage points in October from 13.2 percentage points in September.