BANKS in China extended more new loans than expected in June and the country's money supply rebounded despite a slew of tightening measures.

China's new yuan-backed loans totaled 633.9 billion yuan (US$98 billion) in June, up 20.7 billion yuan from a year ago, the People's Bank of China said today.

Banks extended 551.6 billion yuan of new loans in May.

M2, the broadest measure of money supply, rose 15.9 percent, compared with May's 15.1 percent. China's foreign exchange reserves, the world's largest, rose to US$3.2 trillion at the end of June, from US$3.04 trillion at the end of March, the central bank said.