China stocks surge after record bank-credit growth for 2014

Mainland China share market closed sharply higher on Thursday, 15 January 2015, after record bank-credit growth for 2014 spurred confidence over Beijing's determination to prop up its slowing economy. The Shanghai Composite Index advanced 3.5% to 3336.46 at the close.

Chinese banks issued 697.3 billion yuan (US$112.6 billion) worth of new loans in December, down from 852.7 billion yuan in November, data from the People's Bank of China showed Thursday. At the same time, total social financing, a broader measurement of credit in the economy that include bank lending as well as shadow bank financing activities, rose to 1.69 trillion yuan in December from 1.15 trillion yuan in November. For the full year of 2014, Chinese banks extended a total of 9.78 trillion yuan in new yuan loans, a new high for annual credit growth.

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