China’s new bank loans are expected to fall in February from a record in January, but the drop was likely due to seasonal factors as policymakers step up support for the economy jolted by the coronavirus outbreak, a Reuters poll showed.
Chinese banks are estimated to have issued RMB 1.10 trillion ($158.73 billion) in net new RMB loans last month, down sharply from RMB 3.34 trillion in January, according to the median estimate in a Reuters survey of 30 economists.
But the forecast figure would still be about 24% higher than a year earlier.
A pull-back in February’s lending is widely expected as Chinese banks tend to front-load loans at the beginning of the year to get higher-quality customers and win market share. It is widely expected to cut the RRR again in coming weeks, and to cut the benchmark deposit rate to create more room for lower funding costs.