Chinese banks issued Rmb 1.45 trillion ($211.8 billion) of new loans in July, according to data from China’s banking regulator, marking a 75% rise compared with the same time last year at a time when lending is at the forefront of Beijing’s concerns.
The July figure exceeded average estimates of economists surveyed in a Wall Street Journal poll, who forecast Rmb 1.275 trillion for the month. This suggests that lending is beginning to heat up again as the government attempts to counter an economic slowdown.
New lending for infrastructure projects, a key target for the government, rose 37% last month from June to Rmb 172.4 billion.
In a statement issued over the weekend, the banking regulator also called on commercial banks to up their loans for construction and infrastructure projects, making “full use of current liquidity” and “stable and declining financial costs”, likely referencing policymakers recent measures such as a Rmb 510 billion injection into the banking sector and lower interbank interest rates.