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.

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.

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,

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.