, China
Photo courtesy of Max12Max (Wikimedia Commons)

China’s new bank loans plummet in July amidst COVID fare-ups, property jitters

Analyst warned that new lending may continue to disappoint in the near term.

New bank lending in China fell short of analysts’ expectations, amidst fresh COVID flare-ups, employment worries, and a property market uncertainty, reports Reuters.

Chinese banks extended $101b (CNY679b) in new yuan loans in July, according to data from the People’s Bank of China (PBOC). This is less than a quarter of June’s amount.

ALSO READ: Property woes, unemployment threaten structure letting Chinese banks offload bad loans

In a note, Capital Economics warned that new lending in China may continue to disappoint in the near-term.

Capital Economics said in a note. “[Sentiment] among homebuyers is likely to stay weak and government borrowing is on course to slow,” it added.

ALSO READ: Mortgage boycott threatens Chinese banks’ loan quality

Analysts polled by Reuters had predicted new yuan loans would fall to CNY1.10t in July, versus CNY2.81t the previous month and CNY1.08t a year earlier.
 
Here’s more from Reuters.

Follow the links for more news on

Join Asian Banking & Finance community
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!