chinas monthly new yuan loans nearly double
Last Updated : GMT 12:06:06
Arab Today, arab today
Arab Today, arab today

China's monthly new yuan loans nearly double

Arab Today, arab today

Arab Today, arab today China's monthly new yuan loans nearly double

China's yuan loans
Beijing - XINHUA

China's new yuan-denominated lending stood at 702.5 billion yuan (114.2 billion U.S. dollars) in August, nearly double that in July, the central bank said on Friday.
In July, China's new yuan loans plunged to 385.2 billion yuan, from the 1.08 trillion yuan issued in new loans in June, raising market concerns that the world's second-largest economy may be stuck in a period of weak demand.
The People's Bank of China said in an online statement that new yuan loans in August were 10.3 billion lower than in the same period last year.
A breakdown of August's lending suggested another contraction in short-term corporate loans, which dropped by 69 billion yuan, following a shocking contraction of 236 billion yuan in July, according to the central bank.
New mid- and long-term loans amounted to 240.8 billion yuan in August, 15.8 percent higher than the 208 billion yuan in July. Mortgage lending jumped 32.5 percent month to month to 272.9 billion in August. In addition, bill financing rose to 236.7 billion yuan from 173 billion in July.
The rebound of new yuan loans suggests that the Chinese government and central bank intend to maintain a relatively supportive credit environment to help achieve growth targets, said Wang Tao, chief China economist with financial services firm UBS, in a research note.
Wang highlighted weak domestic credit demand in both July and August, in particular from a slowing property sector which has traditionally had a huge appetite for new credit.
In addition, banks may also have become more risk-averse amid increasing concerns over worsening asset quality, she said.
Xu Bo, an analyst with Bank of Communications, agreed.
The contraction of short-term corporate lending as well as non-bank credit activity in August comes as banks are wary amid declining asset quality and a property downturn, Xu said
New yuan loans in August pointed to sluggish financing demand among China's manufacturers, and the trend was largely in line with other recent macroeconomic indicators, such as electricity output and industrial production, according to the analyst.
The central bank also said that M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 12.8 percent year on year to 119.75 trillion yuan at the end of August.
The growth rate slowed 0.7 percentage points month to month from July, and 1.9 percentage points year on year.
Before the central bank disclosure, Chinese Premier Li Keqiang had revealed the 12.8-percent M2 growth in August on Sept. 9, when he spoke to business leaders on the eve of the World Economic Forum summer gathering in Tianjin.
"There is plenty of money in the pool, and we can't continue relying on money printing to stimulate growth," said the premier, who repeatedly stressed that China will continue a prudent monetary policy and "targeted control measures."
Meanwhile, some economists have downplayed recent deceleration of M2 growth.
Market concerns about the 12.8-percent reading are unfounded, according to a research note from Lu Ting, chief China economist with Bank of America Merrill Lynch.
China's M2 growth, like those in many other countries, has long lost its significance in measuring credit and liquidity thanks to rapid financial innovations, he said.
The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, rose 5.7 percent year on year to 33.20 trillion yuan at the end of last month, said the central bank.
In another statement, it said China's social financing in August, a measure of funds raised by entities through bank credit and other means, stood at 957.4 billion yuan, more than triple the 273.1 billion yuan of social financing seen in July.
Wang Tao said that China is expected to maintain a relatively accommodative liquidity and credit stance to support growth via targeted easing, but there will be no immediate additional action.
Lu said he expected a healthy pace of base money growth for China to the end of this year, and that there is no sign of liquidity tightening. There were also signs of money inflow in July and August thanks to the rise of domestic A-share markets, he said.
In line with these developments, interbank rates dropped in August, with seven-day reverse repurchase rates falling from 4.02 percent at end the end of July to 3.67 percent at the end of August and down further to 3.16 percent on Sept. 9.

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*

chinas monthly new yuan loans nearly double chinas monthly new yuan loans nearly double

 



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*

chinas monthly new yuan loans nearly double chinas monthly new yuan loans nearly double

 



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 Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Online exhibit shows hidden depths of

GMT 11:45 2017 Thursday ,23 November

Online exhibit shows hidden depths of
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 Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
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 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
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 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

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 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

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