New bank lending in China fell more than expected in February from a record in January, but the drop was likely due to seasonal factors as policymakers stepped up support for the economy jolted by a coronavirus outbreak, reported Reuters.
Chinese banks extended RMB 905.7 billion ($130.24 billion) in new RMB loans in February, down from a record RMB 3.34 trillion in January and missing analyst expectations, according to data released by the People’s Bank of China (PBOC) on Wednesday.
The sharper-than-expected fall in new loans, especially household loans, likely reflected the impact of the virus outbreak that saw many banks and companies shut for most of February due to strict anti-contagion measures while the property market also ground to a halt.
Banks saw a net decline of RMB 413.3 billion in household loans in February compared with a rise of RMB 634.1 billion in January, while corporate loans dropped to RMB 1.13 trillion from RMB 2.86 trillion.