China's new loans may rebound to between 600 billion yuan (97.2 billion U.S. dollars) to 700 billion yuan in August, according to a latest report from the China International Capital Corporation.

Earlier data showed new credit flowing into the Chinese economy dropped surprisingly to 385.2 billion yuan in July, raising concerns that the world's second-largest economy may be stuck in a period of weak demand.

Shenyin & Wanguo Securities said the August forecast figure remained relatively weak, attributing the depression to the high financing costs that affected demands in the real economy.

The firm predicted that the M2, a broad measure of money supply that covers cash in circulation and all deposits, would rise 13.2 percent year on year by August, retreating 0.3 percentage point from a month earlier.

China is due to release the credit data next week. Endi

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