China‘s Bank Loan โGrowth Slows in September, Signaling Persistentโค Weak Demand
BEIJING, Oct. 13 – New bank loans inโข China rose at a slower-than-expected pace in September, indicating continuedโ weakness in credit demand despite governmentโข efforts to stimulate theโข economy. The increase โunderscores ongoingโฃ challenges in bolstering growth asโ concerns โmount over the property sector adn broader economic โoutlook.
Chinese banks extended 1.39โค trillionโ yuan โข($190.73 billion) โคinโ new yuan loans in September, according to dataโ released by the People’s Bank of China (PBOC) on Friday.โ This โขfigure falls short of the 1.55 trillion yuan forecastโ by analysts โin a Reuters poll and compares to 1.48 โtrillion yuan issued in August. The slowdown suggests that businesses and consumers remain hesitant โคto take โon new debt, even as the PBOC โขhas implemented various easing measures, including cuts to key interest rates and reserve requirement ratios.
The data reveals a broaderโฃ trend of cautious lending. aggregate financing to the real economy – a more extensive measure of โcredit – increased 309.4 billion yuan in September, down โfromโ 346.4 billion yuan the previous month. This includes corporate bonds, bank bills, โฃand othre forms of โfinancing.โฃ
Mortgage loans, โคa โฃkey indicator of the health of the property market,โข continuedโฃ to struggle. new home sales have been โdeclining, โand developers face mountingโ debt pressures. The PBOCโ data showed that 581.6 billion yuan inโ household โคloans were issued in September,of which โค498.3 billion yuan were mortgageโ loans.
Analysts say the weaker-than-expected loan growth highlights the โneed for more targetedโ and forceful policy support โคto revive credit demand and bolster economic activity. The PBOCโ isโข expected toโ maintain its accommodative monetary policy stance inโ the comingโค months, but the effectiveness of these measures will depend on restoring confidence among businesses and consumers. The next key data releaseโฃ will โฃbeโ October’s figures,which will provide further insight into theโข trajectory of โchina’s credit growth and its โขimpact on the overall economy.
