china bank lending plummets in february despite loosening
Last Updated : GMT 18:18:47
Arab Today, arab today
Arab Today, arab today

China bank lending plummets in February despite loosening

Arab Today, arab today

Arab Today, arab today China bank lending plummets in February despite loosening

New loans extended by banks slid to 726.6bn
Beijing - AFP

China's bank loans plunged in February from January, the central bank said, despite government efforts to encourage lending to keep the world's second-largest economy from slowing.

New loans extended by banks slid to 726.6 billion yuan ($112 billion), the People's Bank of China said late Friday, a massive drop from January's record 2.51 trillion yuan lending surge.

The figure was far below the 1.2 trillion yuan median forecast for new loans in a Bloomberg News survey and analysts.

Observers cited a drop in housing loans and a jump in lending before the early Lunar New Year holiday as reasons for the drop, though the figures were still far weaker than expected.

"China's credit expansion slowed significantly in February, even after considering the Lunar New Year effect," analyst Zhao Yang of Nomura said in a note.

"Weak credit growth suggests that housing market transactions may have slowed and that corporate investment continued to soften."

He added that credit expansion may rebound in March due to seasonal factors.

The central bank's governor Zhou Xiaochuan told reporters Saturday that "unless there are major international or domestic economic or financial volatilities, (we) will keep monetary policy stable".

He added that the central bank does not "think it is necessary to take excessive monetary stimulus" to achieve the government's growth target of above 6.5 percent over the next five years.

"But if major international or domestic events emerge, we will keep monetary policy flexible," he added.

Moody's ratings agency cut its outlook on China's sovereign bonds from stable to negative earlier this month, warning of increasing government debt and further capital outflows and questioning Beijing's ability to implement economic reforms.

China's economy grew 6.9 percent last year, the slowest rate in a quarter century, which prompted the central bank at the start of the month to reduce the amount of funds banks must set aside as reserves to boost lending.

It has also cut interest rates six times since late 2014.

Analysts predict monetary loosening going forward.

"We expect central, local and policy bank bond issuances to accelerate in order to finance the new infrastructure projects," analysts from investment bank CICC said in a note.

"In the meantime, government sectors will likely leverage up further."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china bank lending plummets in february despite loosening china bank lending plummets in february despite loosening

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china bank lending plummets in february despite loosening china bank lending plummets in february despite loosening

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday