China’s new bank loans plummet in July amidst COVID fare-ups, property jitters

Analyst warned that new lending may continue to disappoint in the near term.

New bank lending in China fell short of analysts’ expectations, amidst fresh COVID flare-ups, employment worries, and a property market uncertainty, reports Reuters.

Chinese banks extended $101b (CNY679b) in new yuan loans in July, according to data from the People’s Bank of China (PBOC). This is less than a quarter of June’s amount.

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In a note, Capital Economics warned that new lending in China may continue to disappoint in the near-term.

Capital Economics said in a note. “[Sentiment] among homebuyers is likely to stay weak and government borrowing is on course to slow,” it added.

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Analysts polled by Reuters had predicted new yuan loans would fall to CNY1.10t in July, versus CNY2.81t the previous month and CNY1.08t a year earlier.
 
Here’s more from Reuters.