China’s new bank loans hit record US$3.1 trillion in 2021, more than Britain’s GDP
- Chinese banks extended 1.13 trillion yuan (US$177 billion) in new yuan loans in December, down from 1.27 trillion yuan in November
- New bank lending hit a record 19.95 trillion yuan (US$3.1 trillion) for the year, up 1.6 per cent from 19.63 trillion yuan in 2020
New bank lending in China fell more than expected in December from the previous month, but lending for the full year of 2021 set a record, as the central bank maintained policy support to cushion the slowing economy.
Chinese banks extended 1.13 trillion yuan (US$177 billion) in new yuan loans in December, down from 1.27 trillion yuan in November and falling short of analysts’ expectations, according to data released by the People’s Bank of China on Wednesday.
Analysts polled by Reuters had predicted new yuan loans would fall to 1.25 trillion yuan in December. The tally was lower than 1.27 trillion yuan a year earlier.
Credit growth will probably continue to edge up in the coming months given intensifying efforts to push down borrowing costs and boost lending
“Credit growth will probably continue to edge up in the coming months given intensifying efforts to push down borrowing costs and boost lending,” said Sheana Yue, China economist at Capital Economics.
“That said, policymakers still appear keen to balance their desire to soften the economic downturn with their concerns over high debt levels.
“As such, we expect only a modest pickup in lending which is unlikely to drive a sharp turnaround in economic growth.”