New yuan loans beat estimates by 20%

China's central bank will continue with a prudent monetary policy in the second half of 2014 and will use monetary policy tools flexibly to maintain proper liquidity and achieve reasonable growth in total social financing, a central bank official said on Tuesday.

"The liquidity still remains within a reasonable range," said Sheng Songcheng, head of the statistics department of the People's Bank of China at a media briefing in Beijing. "Although it was abundant during the first half of the year, we will not tighten monetary policy in the second half."

The nation pumped more money into its financial system to lend support to the real economy. Growth in the total social financing aggregate and broadest measure of the money supply exceeded analysts' expectations in June.