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.
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.
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.