Chart of the Week: Chinese banks' loan growth slows to 13% in August

New loans have reached about $2.1b for the first eight months of 2020.

Chinese banks’ loan growth slowed to 13% in August from 13.2% in June, as some banks in major cities ran out of mortgage quota, reports Jefferies Equity Research.

In total, new loans in the sector reached almost $2.13b (RMB14.4t) in the first eight months of 2020.

Jefferies Equity Research analyst Shujin Chen and Alfred He expects loans for the remaining four months of the year to hit $694b (RMB4.7t) up to $827b (RMB5.6t), considering strong demand. This is consistent with the People’s Bank of China’s (PBOC) guidance that that H2 credit will be slightly higher than that recorded during the first half of the year.

“Strong loan demand can be seen in the rebound in bank acceptance bills (in TSF) after a regulatory clampdown on “discounted bill – structured deposit arbitrage” in June, strong personal loans in June-August, and strong long-term (LT) corporate loans in August thanks to a recovery in economic activity and the launch of government-supported infrastructure projects,” Chen and He noted.

For the full year, China’s total social financing (TSF) is expected to easily reach $4.5t (RMB31t) given $694m (RMB4.7t) of new lending on top of the $3.8t (RMB26.1t) in the first eight months of 2020.

Also Read

Thailand’s Kiatnakin Phatra Bank’s loan portfolio to benefit from rising car prices

Tighter money supply strains Indonesian banks’ margins

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit