China‘s Bank Loan Growth Slows in September, Signaling Persistent Weak Demand
BEIJING, Oct. 13 – New bank loans in China rose at a slower-than-expected pace in September, indicating continued weakness in credit demand despite government efforts to stimulate the economy. The increase underscores ongoing challenges in bolstering growth as concerns mount over the property sector adn broader economic outlook.
Chinese banks extended 1.39 trillion yuan ($190.73 billion) in new yuan loans in September, according to data released by the People’s Bank of China (PBOC) on Friday. This figure falls short of the 1.55 trillion yuan forecast by analysts in a Reuters poll and compares to 1.48 trillion yuan issued in August. The slowdown suggests that businesses and consumers remain hesitant to take on new debt, even as the PBOC has implemented various easing measures, including cuts to key interest rates and reserve requirement ratios.
The data reveals a broader trend of cautious lending. aggregate financing to the real economy – a more extensive measure of credit – increased 309.4 billion yuan in September, down from 346.4 billion yuan the previous month. This includes corporate bonds, bank bills, and othre forms of financing.
Mortgage loans, a key indicator of the health of the property market, continued to struggle. new home sales have been declining, and developers face mounting debt pressures. The PBOC data showed that 581.6 billion yuan in household loans were issued in September,of which 498.3 billion yuan were mortgage loans.
Analysts say the weaker-than-expected loan growth highlights the need for more targeted and forceful policy support to revive credit demand and bolster economic activity. The PBOC is expected to maintain its accommodative monetary policy stance in the coming months, but the effectiveness of these measures will depend on restoring confidence among businesses and consumers. The next key data release will be October’s figures,which will provide further insight into the trajectory of china’s credit growth and its impact on the overall economy.
