China Jan new bank loans jump to 3.34 trln yuan, above forecast

BEIJING, Feb 20 (Reuters) - Chinese banks extended a record 3.34 trillion yuan ($476.42 billion) in new yuan loans in January, up from December and exceeding analyst expectations.

Analysts polled by Reuters had predicted new yuan loans would rise to 3.00 trillion yuan in January, up from 1.14 trillion yuan in the previous month and compared with the prior record 3.23 trillion yuan a year earlier.

Broad M2 money supply in January grew 8.4% from a year earlier, central bank data showed on Thursday, below estimates of 8.6% forecast in the Reuters poll. It rose 8.7% in December.

Outstanding yuan loans grew 12.1% from a year earlier compared with 12.3% growth in December. Analysts had expected 12.1% growth.

Growth in the world's second-biggest economy slowed to 6.1% in 2019, the weakest pace since 1990, as demand at home and abroad slowed in part due to the Sino-U.S. trade war.

Policy sources have told Reuters the government plans to roll out more support measures as the virus outbreak, which has killed more than 2,100 people in China and infected over 74,000, is expected to have a devastating impact on first-quarter growth.

The central bank cut the benchmark lending rate on Thursday, as widely expected, as the authorities move to lower financing costs for businesses and support the economy. ($1 = 7.0106 Chinese yuan renminbi) (Reporting by Judy Hua and Kevin Yao; Editing by Jacqueline Wong)