New bank loans in China surged more than expected to a record high in January as the central bank moved to shore up a patchy economic recovery, reinforcing expectations for more stimulus in coming months as U.

In an effort to bolster a patchy economic recovery, new bank loans in China have soared beyond expectations to a record high in January. This move by the central bank strengthens expectations for additional stimulus in the coming months,

China’s credit expansion picked up far more than expected in January from a year ago, even as a record jump in new bank loans failed to reverse an entrenched slowdown in demand for financing.

Chinese banks extended 5.13 trillion yuan ($706.40 billion) in new yuan loans in January, up sharply from December, outpacing analysts' forecasts and hitting an all-time high, as the central bank looks to shore up a patchy recovery in the country's economy.