New lending by Chinese banks surged in January and growth in the money supply accelerated as banks responded to calls by the government to help the economy, Market Watch reported. New loans denominated in the Chinese currency amounted to 1.62 trillion CNY (237 billion USD), up from 771.8 billion issued in December, according to the report, citing from data released on Thursday by the Central Bank. Loans extended by banks were up 21.3% at the end of January from a year earlier. Loan growth in December was 18.8% above the year-earlier month. Money supply climbed 18.8% at the end of January from a year earlier, accelerating from the 17.8% rise at the end of December.
