China July bank loans shrink 50 bln yuan, well below forecasts

BEIJING, Aug 13 (Reuters) - China's yuan loans contracted by 50 billion yuan ($6.97 billion) in July, falling well short of analysts' forecasts and plunging from 2.24 trillion yuan in June, according to Reuters calculations based on data released by the People's Bank of China.

Analysts polled by Reuters had expected new yuan loans last month to reach 300 billion yuan, compared with 260 billion yuan a year ago. July typically sees lower loan disbursement as it follows strong credit expansion in June when banks strive to meet quarterly targets.

The central bank does not provide monthly breakdowns. Reuters calculated the July figures based on the bank's January-July data released on Wednesday, compared with the January-June figure.

($1 = 7.1752 Chinese yuan renminbi)