Date
25 July 2017
The People's Bank of China has been trying to get mainland banks to increase lending to boost slowing economic growth. Photo: Bloomberg
The People's Bank of China has been trying to get mainland banks to increase lending to boost slowing economic growth. Photo: Bloomberg

Chinese bank lending in September hits record high

China’s banks increased lending more than expected last month to a record level for the month of September.

That’s a sign Beijing has had some success in its push to get more credit flowing in the economy, The Wall Street Journal reported.

Economists said the rise was the result of a combination of government efforts to ease monetary policy and boost investment and consumption amid weakening demand globally and at home.

The People’s Bank of China said Chinese banks issued 1.05 trillion yuan (US$165.4 billion) worth of new loans in September, up from 809.6 billion yuan in August and more than the 850 billion yuan economists had forecast.

Total social financing, a broader measurement of credit that takes into account bonds and “shadow lending” by nonbank companies, grew to 1.3 trillion yuan in September, up from 1.08 trillion yuan in August.

Of that, bank lending to the real economy, which excludes credit to financial institutions, stood at 1.04 trillion yuan last month.

RHB economist Zhang Fan was quoted as saying that the recent easing of down payment rules for homebuyers has boosted mortgage lending, while a raft of newly approved infrastructure projects in recent weeks spurred loan demand.

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