The Chinese banks lent out 8% more credits in the national currency reaching 1.1 trillion Yuan ($159.4 billion), compared with the 1.02 trillion Yuan that was in March, according to figures released by People’s Bank of China.

The report increased the concerns over the heavily credit-backed Chinese economy, which government is struggling to cool down the economy and avoid a bubble on the real-estate market.

Based on the PBOC actions, the increasing RRR for banks and raising the overnight interest rate, the forecasters anticipated a decreasing to  815B Yuan in a number of credits fell short of expectations.

At the same time, the total amount of Chinese financing (including bank loans, off-balance-sheet loans, as well as the placing of shares and bonds) last month dropped to 1.39 trillion Yuan against the 2.12 trillion Yuan a month earlier. Analysts expected to see an even deeper cut to the 1.15 trillion Yuan.

Money supply last month increased by 10.5% compared to April 2016, showing the slowest growth since July last year, although markets anticipated an increase of 10.8%.

ShComp, the largest index of blue chips in China, closed with 0.72% gains on Friday, after hitting the lowest level since October 2016 at 3,050 points.

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