New RMB loans down to RMB 667b in May

Growth was offset by the low ST corporate loans.

According to Barclays, new RMB loans in May amounted to RMB 667bn, down from RMB 793bn in April, weaker than market consensus of RMB 821bn, but in line with our earlier expectation of RMB 594-693bn (Big 4 banks lent out RMB 208bn new loans in May, indicating lower than expected system new loans, dated 6 June 2013).

Here's more from Barclays:

The new loan growth was mainly driven by continued strong growth in MLT retail loans (+RMB 229bn in May vs. +RMB 231bn in April, primarily mortgages), but offset by the low ST corporate loans (+RMB 38bn, the lowest level since June 2010), probably due to continued weak corporate activities and more non-bank financing channels used by SMEs (eg. entrusted loans).

Discounted bills recorded an increase of RMB 84bn, down from RMB 169bn in April. Total new RMB loans were amounted to RMB 4.2tn in 5M13, on track to reach RMB 8.5-9tn, in our view.