BEIJING: China Lending Misses; Policy Expected, New bank lending in China jumped less than expected in August after hitting a 15-year low in July, as the central bank keeps policy accommodative and pledges to roll out more supportive measures to bolster a fragile economic recovery.
Chinese banks extended 900 billion yuan (US$126.86 billion) in new yuan loans in August, up 246 per cent from July but short of analyst expectations, data released by the People’s Bank of China showed on Friday.
Analysts polled by Reuters had predicted new yuan loans would reach 1.02 trillion yuan last month, versus 260 billion yuan the previous month, but lower than the 1.36 trillion yuan a year earlier.
“Both broad credit and bank loan growth slowed in August, coming in below expectations,” Leah Fahy at Capital Economics said in a note.
“While stronger government spending should give the economy a boost over the coming months, that doesn’t seem likely to be helped by any pickup in private credit demand.”
The People’s Bank of China (PBOC) does not provide monthly breakdowns, but Reuters calculated the August figures based on the bank’s Jan-August data and the Jan-July figure released earlier.
The PBOC said new yuan loans totalled 14.43 trillion yuan for the first eight months of the year.
Household loans, including mortgages, expanded 190 billion yuan in August after contracting 210 billion yuan in July, while corporate loans rose to 840 billion yuan from 130 billion yuan in July, according to Reuters calculations based on the PBOC data.
A senior central bank official on Friday pledged to maintain a supportive policy and create a sound monetary environment for economic recovery.
Analysts expect the PBOC, which has steadily lowered interest rates and increased liquidity throughout the year, to ease policy further to support growth.
