New bank lending in China fell below expectations in May, fuelling concerns over the effect of the trade war with the United States. Photo: Bloomberg
China’s banks remain reluctant to lend amid US trade war uncertainty, new data shows
- The value of new yuan loans rose to 1.18 trillion yuan (US$170.54 billion), from April but below market expectations of 1.3 trillion yuan
- Impact of US-China trade war is spooking lenders, although overall social credit picked up
Topic |
China economy
New bank lending in China fell below expectations in May, fuelling concerns over the effect of the trade war with the United States. Photo: Bloomberg
The move by the government comes amid signs that domestic economic momentum is weakening due to headwinds from the trade war with the United States. Photo: Bloomberg
China relaxes infrastructure project finance rules, but analysts warn it will have limited economic impact
- Local governments can use bond proceeds to boost their ability to support major projects after tax cuts reduced their revenues
- Authorities can also borrow more from banks to fund infrastructure projects without fear of regulatory crackdown on excess debt
Topic |
China economy
The move by the government comes amid signs that domestic economic momentum is weakening due to headwinds from the trade war with the United States. Photo: Bloomberg