China's RMB711b worth of new loans in August slightly dismays analysts

But MLT loans are finally rebounding.

According to CCB International, new loans in August were RMB711b, below the consensus estimate of RMB730b. 

Resilient loan growth and the PBOC’s forex position saw M2 growth rise 14.7% YoY, 0.2ppt higher than last month and 1.7ppt higher than the full-year target of 13%.

Here's more from CCB International:

Medium- to long-term (MLT) loans are recovering, a reflection of rising FAI. Corporate MLT loans, having reached RMB231b in August, are still recovering albeit at a slightly slower pace than in July.

The central government emphasized the importance of not falling below a minimum limit for GDP growth, likely around 7%. Policies have been introduced to encourage infrastructure development, which will in turn drive up MLT loans and fuel investment.