According to the People's Bank of China (PBOC), new loans from the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), China Construction Bank (CCB) and Bank of China (BOC) totaled 165.03 billion yuan in July, accounting for 46.37 percent of the country's new loans in that month. This indicates that the four largest state-owned banks once again became the main force of credit distribution.
In June, China's new loans reached as high as 1.53 trillion yuan, while the four largest commercial banks made new loans totaling only 497 billion yuan, less than one third of all new loans.
China's 13 shareholding banks issued only 18.37 billion yuan of credit in July, accounting for 5.16 percent of total new loans, down significantly on the previous month.
Market insiders predict that new loans in August will rise slightly month on month. Some analysts hold an optimistic expectation that August's new loans will reach 500 billion yuan.
New loans in the second half of 2006, 2007 and 2008 recorded 1.004 trillion yuan, 1.09 trillion yuan and 2.458 trillion yuan respectively. Considering a common estimation that total new loans in 2009 will be 9 to 10 trillion yuan, new loans issued in the second half is estimated to stand at 1.6 to 2.6 trillion yuan, a relatively high level.
Statistics also showed that short-term loans to privately-run enterprises and the self-employed entities kept rising in July, indicating the improvement of China's credit structure and the warm-up of private investment.
By People's Daily Online