Latest News:  
Beijing   Overcast/Thundershower    31 / 22 ℃  City Forecast

Home>>China Business

Lending jump expected for June

(Xinhua)

08:17, June 28, 2012

BEIJING, June 27 (Xinhua) -- Many Chinese institutions have forecast new yuan-denominated loans will hit 1 trillion yuan (159 billion U.S. dollars) in June, as the nation steps up stimulus measures to spur credit demand.

Lian Ping, chief economist at the Bank of Communications, said new loans in June will be close to 1 trillion yuan, citing rising borrowing demand driven by sped-up approvals for infrastructure projects, expanding construction of low-income housing, and an export rebound last month.

He also expected credit to increase based on a stronger lending impulse and capacity after banks' interest margin narrows and deposits increased.

Moreover, commercial banks usually issue massive loans toward the end of each quarter in order to achieve credit targets in the period, which will also push up new loans, said Guo Tianyong, a professor from the Central University of Finance and Economics.

However, most analysts viewed the anticipated credit jump as a result of government boosting measures, warning of a still-weak credit demand.

Enterprises are still in a de-stocking cycle, and the market demand will remain low over the coming months, according to a report by China International Capital Corp..

The real credit expansion pace may be slower than the market has expected, because banks are likely to take discounted bills into their balance sheet, which will distort the credit figure, it said.

Another report issued by the People's Bank of China, or the central bank, showed that the loan demand index dropped to 70.8 percent in the second quarter of 2012, the lowest since 2009, indicating weak investment confidence among enterprises amid economic slowdown.

With first-quarter GDP growth hitting an almost three-year low of 8.1 percent, China has moved to make its polices more pro-growth after spending two years working to tame inflation.

Official data showed that China's new yuan-denominated loans expanded to 793.2 billion yuan in May from 681.8 billion yuan in April.

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. APF troops conduct comprehensive training

  2. Step one of delivering Chinese liquor culture

  3. Urumqi: A nice day in July

  4. Here comes hot summer in E China

Most Popular

Opinions

  1. Transition comes before democracy in Myanmar
  2. Vatican’s religious assertions tangled with politics
  3. Steady economy recovery key to int'l co-op
  4. China, US hold mixed attitudes toward each other
  5. China steps up moves in South China Sea
  6. New rules lay foundation for migrant law
  7. Economy on thin ice with suppressed interest rates
  8. China faces long-term regional annoyances
  9. Japan’s space law shift rattles regional nerves
  10. Experts call for an end to dispute over islands

What's happening in China

Education ministry issues summer safety warning

  1. Discipline official to combat financial corruption
  2. China to give private investment preferences
  3. Shenzhen OK'd to test freer use of yuan
  4. Rising stocks of coal fuel concerns
  5. Huading Award ceremony held in Beijing

China Features

  1. China will retain a high economic growth
  2. Why Chinese people love luxury goods?
  3. Official puts on airs in prison
  4. Beautiful scenery of Inner Mongolia Grassland
  5. Sharpshooter with excellent skills

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai