PREVIEW-China Sept lending may have eased, FX reserves risen

* Sept new loans forecast at 650 bln yuan vs 703.9 bln yuan in August

* Sept M2 forecast up 13.7 pct y/y vs 13.5 pct in August

* Sept outstanding loan growth seen up 16.3 pct y/y vs 16.1 pct in August

* Data due any time between Oct. 10-15

BEIJING, Oct 9 (Reuters) - China's banks likely lent less money in September than August even though the year-on-year pace of loan growth probably accelerated as Beijing kept monetary policy loose to support a slowing economy, a Reuters poll of 28 economists found.

Chinese banks are expected to have made 650 billion yuan ($103 billion) of new loans last month, cooling from August's robust 703.9 billion yuan though still sharply higher than July's 540.1 billion yuan - the low point of the year so far.

Economists also forecast the broader measure of M2 money supply grew 13.7 percent in September from August's 13.5 rise, while annual growth in outstanding local currency loans was reckoned to have accelerated to 16.3 percent in September from August's 16.1 percent.

China's foreign exchange reserves, the world's largest, were

expected to have increased slightly at the end of September from the end of the second quarter, with the pace of accumulation dented by slowing export growth and outflows of speculative capital. Analysts expect the pile of reserves to have grown just $13 billion to $3.253 trillion.

Chinese banks extend loans at the central government's behest, and money and credit numbers have become among China's most closely watched economic data as they reveal both policy aims and the state of credit demand.

"With the government somewhat more worried about the economic slowdown recently, we expect that banks have been allowed to lend more to support infrastructure investment," said UBS China economist, Tao Wang, in a note to clients.

China's economic growth limped to its lowest in more than three years in the second quarter as exports slowed and domestic demand struggled to take up the slack. Analysts polled by Reuters expect full year growth to be the weakest since 1999 at 7.7 percent.

Beijing has not, however, announced a formal fiscal stimulus package, though in September it gave the green light to 60 infrastructure projects worth more than $150 billion.

Analysts said demand for loans may not be as strong as expected as firms are running down inventories and a lending spike is unlikely unless the government aggressively loosens monetary policy.

Central bank chief, Zhou Xiaochuan, said in an article published this week that China would keep monetary policy flexible and pre-emptive to support activity in an economy still facing relatively big downward pressure.

The People's Bank of China has cut interest rates twice this year, given banks more freedom to set borrowing costs by liberalising rates at the margin and released an estimated 1.2 trillion yuan ($190 billion) for lending by lopping 150 basis points from required reserve ratios in three moves since November last year.

"We expect net new lending to stay roughly where it was in August, consistent with the message from elsewhere - overall demand has stabilised but is not rebounding yet," Capital Economics' China economist Qinwei Wang wrote in a note to clients.

The PBOC has recently used money market operations to inject short-term liquidity into the banking system, holding off on explicit policy loosening for fear of rekindling consumer and property price inflation.

Analysts still expect further policy loosening, including cuts in RRR or even interest rates in the coming months.

For more previews on upcoming Chinese economic data next week, click

(M2, loan growth in percent change y/y; new loans in bln yuan, reserves in trln, dollars)

FORECASTS Reserves M2 New loans Loan growth ANZ ~ ~ 700.0 ~ Bank of Communications ~ 13.6 800.0 16.6 BBVA 3.255 13.7 650.0 16.3 BOC International 3.260 13.7 620.0 16.2 BofAML ~ 13.9 700.0 16.4 CDB Securities ~ 13.7 650.0 16.1 CCB 3.310 15.0 600.0 16.2 CICC ~ 13.5 750.0 ~ CITIC Securities ~ 13.9 650.0 ~ Deutsche Bank ~ 14.0 650.0 ~ Everbright Securities ~ 13.8 600.0 16.2 Forecast PTE ~ 13.7 700.0 ~ Goldman Sachs ~ 13.8 680.0 ~ Huarong Securities 3.330 13.3 610.0 16.3 Hwabao Trust 3.200 13.6 650.0 16.3 Industrial Bank 3.250 13.9 750.0 16.5 ING Financial Markets ~ 13.4 700.0 ~ JPMorgan ~ 14.0 615.0 16.2 Mizuho ~ 13.6 650.0 ~ OCBC ~ 13.6 600.0 ~ Peking First Advisory 3.250 13.9 700.0 16.4 Pingan Securities ~ 13.7 730.0 ~ Sealand Securities ~ 13.8 600.0 16.2 Shanghai Securities 3.300 13.6 600.0 16.0 Shenyin & Wanguo ~ 13.9 750.0 16.4 Societe Generale 3.180 13.7 700.0 ~ Standard Chartered 3.250 13.4 750.0 ~ UBS ~ 13.4 650.0 16.3


Median 3.253 13.7 650.0 16.3 High 3.330 15.0 800.0 16.6 Low 3.180 13.3 600.0 16.0

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($1 = 6.2872 Chinese yuan)

(Reporting By Xiaoyi Shao and Nick Edwards; Editing by Jacqueline Wong)