Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    New bank loans rise to 1.28 trillion yuan

    By CHEN JIA | CHINA DAILY | Updated: 2020-09-12 09:35
    Share
    Share - WeChat
    A worker counts Chinese currency Renminbi (RMB) at a bank in Linyi, East China's Shandong province. [Photo/Xinhua]

    Continued policy support to keep economy on track despite headwinds

    Chinese banks extended more new loans in August than in July, indicating that continued policy support will keep the economy on an even keel and help it recover from the COVID-19 effect.

    Banks extended 1.28 trillion yuan ($187.3 billion) in new yuan loans in August, up from 992.7 billion yuan in July, according to data released by the People's Bank of China, the central bank, on Friday.

    Aggregate financing, the total financing amount going to the real economy including government bonds, reached 276.74 trillion yuan by the end of last month, up 13.3 percent on a yearly basis. Its growth has accelerated compared with a reading of 12.9 percent in July, according to PBOC data.

    The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 10.4 percent from a year earlier to 213.68 trillion yuan at the end of August, slowing down from the 10.7-percent growth at the end of July.

    But the growth rate was still 2.2 percentage points higher than that of the same period last year, indicating a relatively loose monetary policy to support economic growth, experts said.

    The central bank has, however, maintained adequate liquidity in the system by easing the monetary policy to offset negative impacts due to the COVID-19 pandemic.

    But some economists expect the Chinese economy to face head winds in the coming months. Indications to this are already evident in the official manufacturing purchasing managers' index for August, which inched down to 51.0 from 51.1 in July.

    Some experts said that the fall indicated that the economic rebound demand may have lost some steam although the service sector PMI has shown a faster recovery. That may push the monetary authorities to further lower the lending rates to reduce funding costs for corporate borrowers, they said.

    Besides, the PBOC may be more likely to inject liquidity into the interbank system via open-market operations within certain time frames, said Stephen Chiu, an Asia FX and Rates Strategist with Bloomberg Intelligence.

    "The PBOC may roll over some of the expiring interbank funds this month, with the help of a more accommodative fiscal position, to deal with the liquidity drain amid more government bond issuances. Further monetary easing may not be needed, and the loan prime rates, the new benchmark lending rate, will remain unchanged," Chiu said.

    According to official data, the PBOC drained 683.9 billion yuan of liquidity through the medium-term lending facility in the second quarter of this year, compared with a net injection of 840.5 billion yuan in the first quarter.

    The moderation in liquidity injection eases concerns that authorities may try to stimulate the economy with an oversized credit injection and put the economy back on the path of debt-fueled growth, a major risk to the stability of the banking system, said Nicholas Zhu, an analyst with Moody's Investors Service, a global credit ratings agency.

    Banks' asset quality and profitability have weakened since the second quarter of the year, as the government has encouraged a large amount of cheap lending to spur economic growth. "But the government will continue to call on banks to support the real economy, given the economic head winds and uncertainties from the COVID-19 pandemic," said Zhu.

    The PBOC devised two credit instruments in early June, the loan extension support tool, which aims to encourage banks to defer businesses' inclusive loan repayments, and the credit loan support tool, which is designed to step up loan issuances.

    Analysts said the two tools will continue to leverage more credit resources to support the corporate sector, especially for small and medium-sized enterprises.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    久久亚洲av无码精品浪潮| 无码国产69精品久久久久网站| 亚洲av无码精品网站| 中文字幕久精品免费视频| 免费无码VA一区二区三区| 日韩人妻无码精品专区| 欧美日本中文字幕| 国产亚洲精品无码专区| 久久精品无码专区免费青青| 成在人线av无码免费高潮喷水| 精品久久久久久久久中文字幕| 日韩久久无码免费毛片软件| 无码人妻少妇久久中文字幕蜜桃| 中文成人久久久久影院免费观看| 中文字幕无码日韩专区| 无码人妻精品一区二区蜜桃百度| 毛片无码免费无码播放| 少妇无码AV无码专区在线观看| 久久午夜福利无码1000合集| 久久亚洲2019中文字幕| 美丽姑娘免费观看在线观看中文版| 久久99久久无码毛片一区二区| 国产免费无码一区二区| 日韩亚洲AV无码一区二区不卡| 夜夜添无码一区二区三区| 一本色道无码道在线观看| 内射人妻少妇无码一本一道| 日韩AV高清无码| 国产成人无码区免费内射一片色欲| 免费a级毛片无码| 国产亚洲情侣一区二区无码AV| 中文字幕一区一区三区| 欧美 亚洲 日韩 中文2019| 少妇极品熟妇人妻无码| 青春草无码精品视频在线观| 免费无码黄十八禁网站在线观看| 久久久精品人妻无码专区不卡| 无码欧精品亚洲日韩一区夜夜嗨| 在线看中文福利影院| 最好看的2018中文在线观看| 无码中文人妻视频2019|