Date
18 December 2017
A slowing economy and growing credit risks have prompted caution among Chinese banks. Photo: Bloomberg
A slowing economy and growing credit risks have prompted caution among Chinese banks. Photo: Bloomberg

China banks curb lending in December

Chinese banks granted 697.3 billion yuan (US$112.55 billion) in new loans in December, far less than expected despite instructions to step up lending towards the end of the year, Reuters reported.

In November, new renminbi loans had amounted to as much as 852.7 billion yuan.

The December data suggests that either credit demand has slowed or banks have become more risk-averse amid a slowing economy. 

For the full-year, new renminbi loans figure — at 9.78 trillion yuan – was however about 10 percent higher than the 2013 level, providing some relief for market watchers. 

Other data released Wednesday showed China’s broad M2 money supply rising 12.2 percent in December, slower than the 12.3 percent expansion pace recorded in the previous month.

China is likely to report next week that its economic growth last year was the slowest in 24 years. Analysts predict a further loss of momentum in 2015 even if Beijing rolls out more stimulus measures, the report said.

– Contact us at [email protected]

FL/RC

EJI Weekly Newsletter

Please click here to unsubscribe