September 12, 2018 / 9:10 AM / 11 days ago

China Aug new loans fall to 1.28 trln yuan, below forecasts

BEIJING, Sept 12 (Reuters) - Chinese banks extended 1.28 trillion yuan ($186.40 billion) in net new yuan loans in August, slightly less than analysts had expected and down from the previous month.

Analysts polled by Reuters had predicted new yuan loans of 1.3 trillion yuan, down from July’s 1.45 trillion yuan but nearly 20 percent more than the same month last year.

Broad M2 money supply grew 8.2 percent in August from a year earlier, central bank data showed on Wednesday. Analysts had expected M2 to rise 8.5 percent, matching July’s pace.

Outstanding yuan loans grew 13.2 percent from a year earlier, matching expectations and in line with July’s rise.

Total new bank loans in the first seven months of the year jumped 19 percent from a year earlier to 10.48 trillion yuan. That is well on track to set a new full-year record, eclipsing last year’s 13.53 trillion yuan.

With U.S. tariffs threatening to heap more pressure on China’s already slowing economy, policymakers have shifted their focus in recent months to improving credit conditions and lower financing costs.

But authorities are having difficulty persuading banks to take on more exposure to struggling smaller companies as domestic demand slows and debt defaults rise. ($1 = 6.8670 Chinese yuan renminbi) (Reporting by Kevin Yao and Cheng Fang; Editing by Kim Coghill)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below