Arab Today, arab today china bank lending rebounds strongly in may
Last Updated : GMT 11:57:29
Arab Today, arab today
Arab Today, arab today

China bank lending rebounds strongly in May

Arab Today, arab today

Arab Today, arab today China bank lending rebounds strongly in May

China economy
Shanghai - AFP

China’s bank lending rebounded strongly in May following a sharp fall in April, the central bank said Wednesday, as borrowers continued to take advantage of loosened lending standards put in place by Beijing in hopes of stimulating slowing economic growth.

New loans extended by banks jumped to 985.5 billion yuan ($149.3 billion) last month, up from 555.6 billion yuan in April, the People’s Bank of China (PBoC) said.

The figure, which stood at 1.37 trillion yuan in March before slumping in April, beat a median forecast of 750 billion yuan in a survey by Bloomberg News.

Easy credit has been an important policy tool as Beijing works to avoid a hard landing for its slowing economy, but many analysts are concerned the country is facing a hangover from its debt-binge.

There is “no sign at all of credit being reined in,” Michael Every, head of financial markets research at Rabobank Group in Hong Kong, told Bloomberg News in response to the results. 

“Naturally it’s very short-term positive, much more worrying longer term.”

The rebound was likely fuelled by mortgage loans, Nomura analyst Yang Zhao said in a note.

“We continue to believe that the debt-fuelled rebound in investment growth will be short-lived and maintain our forecast for GDP growth to slow,” he wrote.

In a separate statement, the PBoC said that total social financing — an alternative measure of credit in the real economy — fell for a second month to 659.9 billion yuan in May from 751.0 billion yuan in April.

Analysts said the fall is caused by a renewed crackdown on shadow banking, which resulted in a sharp contraction in banks’ bill financing.

“The overall credit figure is not bad, but the social financing is way too low, which will put more pressure on economic growth in the future,” Liu Dongliang, a senior analyst at China Merchants Bank in Shenzhen, said in a research note.

Lending obligations in China have increased dramatically following several rounds of credit loosening intended to stimulate waning growth.

The country’s economy grew 6.9 percent last year, the slowest rate in a quarter century, and weakening economic figures have led many to question whether Beijing can meet its goal of achieving 6.5 to 7 percent growth for the second quarter of this year.

Wednesday’s announcement comes after an official from the International Monetary Fund (IMF) warned Beijing of the risks of credit binges.

“Addressing the corporate debt problem is imperative to avoid serious problems down the road,”said David Lipton, a Deputy Managing Director at the organisation, speaking Tuesday in Beijing.

Recent policy support means that the near-term growth outlook for the country is buoyant, he said, but warned that potential pitfalls lay ahead, making the longer term health of the economy “uncertain”. 

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*

Arab Today, arab today china bank lending rebounds strongly in may Arab Today, arab today china bank lending rebounds strongly in may

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
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