China's new loans rose by a record in January and money supply expanded at the fastest rate for more than a year, riding on China's stimulus packages to bolster the economy.

Banks extended 1.62 trillion yuan (US$237 billion) in new local-currency loans and M2, the broadest measure of money supply, climbed 18.8 percent from a year earlier, the People's Bank of China said today on its Website.

M2, which includes cash and all deposits, gained 17.8 percent in December.

The outstanding value of yuan loans rose 21.33 year-on-year to 31.99 trillion yuan at the end of January.

Chinese banks are following the government's call to support the economy by granting more loans.