Chinese loan demand at historic low

The willingness of Chinese companies to borrow reached a 12-year low in the third quarter, Caixin reports. Amid an economic slowdown, the overall index of loan demand was at 55.7 in the third quarter, the lowest since the People’s Bank of China started to compile the data in 2004. The index of loan demand from medium-sized enterprises fell to 52 and for small business to 55.8, both historic lows. However, the figure for large corporations slightly rebounded at 51.4, up 0.1 points from a quarter earlier. Faced with a slower economy, small and medium-sized enterprises (SMEs) now find it difficult to expand their businesses, said an SME loan manager at one of China’s midtier commercial banks who did not want to be named.