China July bank lending set to plunge as credit demand stays weak
A Reuters poll of 20 economists indicates that new bank loan issuance in China is expected to rise by only 45 billion yuan in July, a sharp drop from the 1.61 trillion yuan issued in June, signalling a plunge in lending. Weak private‑sector credit demand and household deleveraging are cited as the main drivers. The People’s Bank of China (PBOC) said on Aug. 1 it will adjust monetary‑policy tools, keep liquidity ample and guide banks to boost credit supply.
Broad‑money (M2) growth is projected at 7.9% year‑on‑year for July, slightly slower than June’s 8%. Outstanding yuan loans are estimated to have grown 5.3% YoY, up from 5.2% in June. Total social financing is likely to total 1.2 trillion yuan in July, down sharply from 3.36 trillion yuan the month before. Moody’s Investors Service commented that China’s credit conditions should remain stable in the second half of the year, with policy‑directed lending to strategic sectors offsetting the subdued private borrowing.
Entities
China · Citi Research · Moody’s Investors Service · People’s Bank of China
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Credit demand of the private sector remains subdued and households may resume deleveraging in July. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] New bank loan issuance in China is expected to rise by 45 billion yuan in July. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] Total social financing likely amounted to 1.2 trillion yuan in July, down from 3.36 trillion yuan the previous month. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] Bank loan issuance in June was 1.61 trillion yuan, far higher than the July figure. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] Outstanding yuan loans grew 5.3% year‑on‑year in July, compared with 5.2% growth in June. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] Broad‑money (M2) growth is expected to be 7.9% year‑on‑year in July, slightly slower than June’s 8%. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] Moody’s said China’s credit conditions will remain stable in the second half of the year, with policy‑directed lending to strategic sectors offsetting subdued private borrowing. kelo.com · wkzo.com · wsau.com
- [● 3 SOURCES] The People’s Bank of China pledged to adjust monetary‑policy tools, keep liquidity ample and guide financial institutions to enhance credit supply. kelo.com · wkzo.com · wsau.com