China's new bank loans tumbled more than expected in April as a protracted trade war with the United States further eroded the market's appetite during a typically slow month for loan demand.

Chinese banks extended 280 billion yuan ($38.87 billion) in new yuan loans in April, plummeting from March's 3.64 trillion yuan, according to data released by the People's Bank of China.

Total outstanding yuan loans rose 7.2% in April from a year earlier, unchanged from March.

Banks extended a total of 10.06 trillion yuan in new loans in the first four months, down from 10.19 trillion yuan in the same period last year.

Wednesday's central bank data showed broad M2 money supply grew 8.0% from a year earlier, ahead of 7.0% growth in March.

The narrower M1 money supply rose 1.5% year-on-year, compared with 1.6% in March.

Outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, grew 8.7%, up from 8.4% in March. More government bond issuance aimed at boosting the economy helped TSF growth.

Powered by Commodity Insights