(Yicai Global) April 10 -- China's household consumption and home purchases fell steeply in the first quarter due to the coronavirus lockdown, with the value of new loans to households slumping, according to new data from the central bank.

New yuan-denominated loans to households totaled CNY1.21 trillion (USD172 billion) in the first three months of the year, compared with about CNY1.82 billion a year earlier, the People's Bank of China said today. Meanwhile, the total of all new yuan loans climbed 22 percent to CNY7.1 trillion (USD1.0 trillion) in the period.

Based on preliminary estimates, the Covid-19 outbreak was the main reason for the drop in household consumption and home buying, Ruan Jianhong, head of the PBOC's department for financial surveys and statistics, told a press briefing.

New loans were extended to support the real economy for the most part, with 85.1 percent going to businesses and public institutions, Ruan said.

New short-term loans, totaling CNY2.3 trillion, were issued to firms with cash flow issues, up CNY1.25 trillion from a year earlier. New medium- and long-term loans, tallying CNY3.04 trillion, went to help companies to resume production and operations, an annual increase of CNY476.6 billion.

China's M2 broad money balance was CNY208.09 trillion at the end of last month, up 10.1 percent from a year earlier, 1.3 percentage point and 1.5 percentage point higher, respectively, than that at the end of February and the same period last year, according to PBOC data also published today.

China's economy faced much downward pressure in the first quarter because of the virus outbreak, so the PBOC used multiple policy tools to enhance support for virus control and offset its adverse effects. Guided by these policies, commercial banks issued more loans, resulting in a sharp rebound in M2 growth and maintaining a reasonably sufficient liquidity in society, Ruan said.

New social financing, a broad gauge of credit and liquidity in the economy, totaled CNY11.08 trillion in the first quarter, up CNY2.47 trillion from the same period last year, the PBOC said.

Editor: Peter Thomas