China bank loans down to lowest in a year, but broader credit growth quickens

Lenders issued 689.8 billion yuan (US$104.3 billion) in new yuan loans last month, data from the People’s Bank of China (PBOC) showed on Wednesday

This was down from 1.9 trillion yuan in September, but broad M2 money supply in October grew 10.5 per cent from a year earlier

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Analysts polled by Reuters had predicted new loans would drop to 800 billion yuan (US$121 billion). October new loans hit the lowest since the same month last year, when the tally was 661.3 billion yuan. Photo: Bloomberg

Published: 5:24pm, 11 Nov 2020Updated: 5:24pm, 11 Nov 2020

China’s new bank loans fell more than expected in October to their lowest in a year, but the drop was likely seasonal and policymakers are expected to maintain solid support for the economy as the global pandemic drags on.

Authorities have stepped up support for cash-starved smaller companies after a record coronavirus-induced slump early in the year.r

But while China’s economy is recovering quickly from the health crisis, surging infections in Europe and the United States are clouding the global outlook.

Lenders issued 689.8 billion yuan (US$104.3 billion) in new yuan loans last month, data from the People’s Bank of China (PBOC) showed on Wednesday, down from 1.9 trillion yuan in September and falling short of analysts’ expectations.

Analysts polled by Reuters had predicted new loans would drop to 800 billion yuan. October new loans hit the lowest since the same month last year, when the tally was 661.3 billion yuan.

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