Start trading now on Poste Italiane

China’s Sept new bank lending jumps less than expected

|

© FILE PHOTO: People cross a street near office towers in the Lujiazui financial district, ahead of the National People’s Congress (NPC), in Shanghai, China, February 28, 2023. REUTERS/Aly Song/File photo

BEIJING () – China’s new bank loans came in softer than expected in September, figures from the central bank showed on Friday, even as it strives to bolster a shaky economic recovery amid tepid demand.

Chinese banks issued 2.31 trillion yuan ($316.15 billion) of new yuan loans in September, up sharply from 1.36 trillion in August, according to the data from the People’s Bank of China.

That missed forecasts from analysts polled by for a jump to 2.50 trillion yuan in September. It was also less than the figure of 2.47 trillion yuan in September last year.

Household loans, including mortgages, rose to 858.5 billion yuan from 392.2 billion in August. Corporate loans climbed to 1.68 trillion yuan from 948.8 billion in August.

The figures came as a central bank official vowed to deploy monetary policy in a “precise and forceful” manner, adding that the bank has ample policy room to support the economy.

In September, the central bank cut the reserve requirement ratio, or the amount of cash banks must hold as reserves, for the second time this year, as part of measures to prop up domestic demand.

Some analysts, unnerved by a prolonged property slump and weak consumer spending, are still not convinced China will be able to meet its annual growth target of about 5%, despite signs of stabilising.

The broad measure of money supply M2 expanded 10.3% from a year earlier, central bank data showed, missing the poll forecast of 10.7%. M2 grew 10.6% in August from a year earlier.

Outstanding yuan loans in September grew 10.9% from a year earlier, which undershot forecasts and was down from 11.1% in August.

Annual growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, hit 9% in September, unchanged from August’s rate.

TSF includes off-balance sheet forms of financing outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

In September, TSF climbed to 4.12 trillion yuan from 3.12 trillion in August. Analysts polled by had predicted TSF of 3.8 trillion yuan in September.

($1=7.3066 renminbi)

Previous Post
Factbox-What to watch for at Xi’s meeting with Putin
Next Post
South Korea to fine two Hong Kong banks for naked short-selling

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

Invest on crypto with Gianluca Vacchi project and start making money now
Win money trading on Amazon
INVEST NOW
keyboard_arrow_up