China’s July new loans up 1.45t yuan, above estimates

A man walks past the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing November 20, 2013. — Reuters pic
A man walks past the headquarters of the People’s Bank of (PBOC), the , in Beijing November 20, 2013. — Reuters pic

SHANGHAI, Aug 13 — banks extended 1.45 trillion yuan (RM865.24 billion) in new yuan loans in July, the China and Regulatory Commission said this morning, considerably higher than analysts’ expectations, as policymakers continue to pump liquidity into a slowing economy.

Faced with sluggish domestic demand and potential pressure from a trade war with the United States, Chinese policymakers have recently boosted policy support and softened their stance on deleveraging.

The central bank is also due to issue M2 money supply and outstanding growth data this week.

Analysts polled by Reuters had predicted new July yuan loans of 1.2 trillion yuan, easing from a five-month high of 1.84 trillion yuan in June, according to a Reuters survey of 36 analysts.

China’s new loans rose by 1.45 trillion yuan in July, compared with a year earlier, an increase of 623.7 billion yuan, according to preliminary figures in a statement posted on the official website of the China Banking and Insurance Regulatory Commission (CBIRC) on Saturday.

There has been little change in off-balance sheet financing, such as trust loans and entrusted loans, the CBIRC said without providing further data.

Beijing has been clamping down on shadow lending in an effort to reduce risk in the wider financial sector.

In the first half of the year, the total disposal of non-performing loans hit 800 billion yuan, around 166.5 billion yuan more than the same period a year earlier, the CBIRC added.

At the end of June, the capital adequacy ratio of commercial banks was 13.52 per cent and the core tier 1 capital adequacy ratio of 10.57 per cent. — Reuters

Source: The Malay Mail Online

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