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China's August new bank loans miss expectations, credit growth slows

BEIJING (Reuters) – China’s new bank loans rose less than expected in August, while broad credit growth eased as the coronavirus outbreak and deepening housing crisis weighed heavily on the economy despite the central bank’s efforts to stimulate demand Delay.

Bank expansion 1. 10 trillion yuan ($ 49.22 New in August The increase in yuan loans was higher than in July but below analysts’ expectations, data released by the People’s Bank of China (PBOC) on Friday showed.

Analysts polled by Reuters had forecast new The increase in RMB loans will increase to 1. 49 trillion yuan, compared with the previous month 679 billion yuan more than doubled, higher than last month 075 trillion yuan in the same month last year.

including mortgage Household loans including loans increased to 49 billion in July to 180 700 million yuan, corporate loans jumped from

to 875 100 million yuan Central Bank Data Display, July was 700 million yuan.

But credit demand remains weak due to weak business and consumer confidence

“The August loan data was driven by stronger medium- and long-term corporate lending , while household loans are still relatively weak,” said Luo Yunfeng, an analyst at China Merchants Securities.

Nomura estimates 49 As of September 6, the city is in some type of COVID lockdown, almost Accounted for 10% of China’s population and about % of GDP.

The real estate sector battered by the debt crisis has been hit by a mortgage boycott as buyers refused to pay for stalled projects. New home sales and construction fell.

Policymakers on Monday said a renewed sense of urgency to take steps to boost a flagging economy, calling this quarter a critical time for policy action amid evidence of a further loss of momentum.

August 22 The central bank lowered the one-year loan prime rate (LPR), its The benchmark lending rate was cut by 5 basis points and the five-year LPR, which affects mortgages, was cut by an even greater margin.

Limited room for easing

National Bureau of Statistics (NBS) data showed that the consumer price index (CPI) rose 2.5% year-on-year in August. Analysts said a slowdown in inflation could provide some room for further easing of monetary policy.

“In the near term, any significant acceleration in credit growth is increasingly unlikely,” Capital Economics said in a note.

“The People’s Bank of China slashed its key policy rate slightly in August. Quantitative controls continue to ease. But the (China) People’s Bank is pushing a string. Demand is the problem.”

Broad M2 money supply growth year-on-year .2% earlier, Central bank data showed that was higher than the .1% estimate in a Reuters poll. In July, M2 increased by 10% year-on-year.

The balance of RMB loans increased by 10 year-on-year at the end of August by 9%, With last month growth percentage. Analysts had expected 10% growth.

Before the end of October, local governments will issue 679 one billion yuan of carry-over special bonds to provide infrastructure projects financial support.

Any accelerated government bond issuance could help boost total social financing (TSF), a broad measure of credit and liquidity.

Growth in total social financing outstanding (TSF), a broad measure of credit and liquidity in the economy, slowed in August from 875 to 10.5% .7%.

TSF included in traditional Forms of off-balance sheet financing that exist beyond bank loans

In August, TSF jumped to 2.48 trillion yuan, up from 679 1 billion yuan in July. Analysts polled by Reuters had expected 2.075 trillion yuan.

($1=6.9176 RMB RMB)



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