Chinese banks issued just under $200 billion net in new RMB loans in September, an 8.8% increase on the same period last year, but a marked deceleration from the 16.7% year-on-year growth recorded in August, Caixin reports. The slowdown suggests that business sentiment is becoming more pessimistic in China despite the government’s efforts to shore up the economy.
The data released by the People’s Bank of China showed that enterprises took out RMB 161.9 billion ($23.3 billion) more short-term loans than last year, but RMB 122.9 billion less mid- to long-term loans.
According to Caixin, the figures suggest that companies’ confidence in the long-term outlook for the economy is declining and firms are less willing to invest in local infrastructure projects.
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