(Yicai) Feb. 17 -- New bank lending in China and increment of social financing, a broader measure of credit and liquidity to the real economy, both increased by more than expected last month to set fresh records.

Chinese banks lent CNY5.13 trillion (USD713.8 billion) in January, a 4.3 percent rise from the same month a year earlier, according to data released by the People's Bank of China on Feb. 14. Total social financing jumped by CNY583.3 billion (USD80.5 billion) to CNY7.06 trillion.

Chief economists surveyed by Yicai earlier this month expected new lending and social financing to have totaled CNY4.27 trillion and CNY5.96 trillion, respectively, in January.

Corporate borrowing was the main factor behind the jump in bank lending. Medium-to-long-term corporate loans rose by CNY150 billion, thanks to the faster pace of support to whitelisted real estate projects, said Wang Qing, chief macroeconomic analyst at Golden Credit Rating.

The surge in corporate lending appears to be supply-driven, according to Xiao Jinchuan, an analyst at Huaxi Securities. Aggressive lending at the start of the year may have pulled forward some credit demand that would have otherwise occurred in later months, Xiao added.

Household borrowing remained weak though, with consumer lending falling by CNY536.3 billion. This was mainly due to seasonal factors such as Chinese New Year bonuses paid to employees, said Wen Bin, chief economist at China Minsheng Bank.

The balance of M2, a broad measure of money supply that covers cash in circulation and all deposits, had climbed 7 percent from a year ago to CNY318.52 trillion (USD43.93 trillion) as of Jan. 31, down from 7.3 percent a month earlier and missing expectations for 7.44 percent.

Zhejiang Securities attributed this to ongoing outflows of non-bank deposits, lower interbank deposit rates since late November, and the stepped-up pace of government bond sales in contrast with slower fiscal spending.

Though the month’s credit figures were robust, they mainly resulted from seasonal factors around the Chinese New Year, which fell in January this year and February last year, according to bankers.

This month’s data are expected to moderate, with the sustainability of future credit growth dependent on the effectiveness of demand-side policy measures, said Li Chao, a macroeconomic analyst at Zhejiang Securities.

Editor: Futura Costaglione