New loans in July may hit 600b yuan

The credit growth will be relatively stable in the second half of the year. New loans of this year will reach between 8 trillion yuan ($125.6 billion) to 8.5 trillion yuan and new credit will be probably seen at 600 billion yuan in July, reported Xinhuanet.com on Monday, citing the industry analysis reports.

Reports from most institutions indicate that, with the support of the macro-control policies, the economic growth rate is expected to see a slight rebound in the future.

The consultation report from Anbound Consulting Group said that, in the context of the economic downturn pressure mounting, a modest easing of credit in order to "steady growth" is necessary.

The Financial Research Center of Bank of Communications predicts that the incremental credit will be relatively stable in the second half of the year and the average monthly new loans will be 500 billion to 600 billion yuan.

Huatai Securities Co announced that the increasing rate of putting credit into circulation in the first half of July has benefited from some of the "steady growth" projects that have entered into the loan period and the bills' recovery growth.

According to the data released by the Chinese central bank on July 19, new renminbi loans hit 919.8 billion yuan in June, rising for the second consecutive month, and approaching the highest point this year.

Preliminary statistics show that by the end of June 2012, the balance of renminbi loans of all financial institutions was 59.64 trillion yuan, a year on year increase of 16 percent. In the first half, the figure increased by 4.86 trillion yuan, up 683.2 billion yuan from the previous year.