Reuters reports that Chinese banks extended more new loans in August than the previous month, while broad credit growth quickened, pointing to continued policy support to help the economy recover from a coronavirus-induced slump.

Banks extended 1.28 trillion yuan ($187.25 billion) in new yuan loans, up from July and slightly exceeding analyst expectations, according to data released by the People's Bank of China (PBOC) on Friday.

Analysts had predicted new yuan loans would rise to 1.22 trillion yuan in August as the economy continued to recover, up from 992.7 billion yuan in the previous month but largely in line with 1.21 trillion yuan a year earlier.

Household loans, mostly mortgages, rose to 841.5 billion yuan from 757.8 billion yuan in July, while corporate loans jumped to 579.7 billion yuan from 264.5 billion yuan.

August data so far suggests China's economic recovery is continuing to build up steam after a record slump in the first quarter fuelled by coronavirus outbreaks and lockdowns.