China’s new bank loans likely dropped in October on a monthly basis but were elevated compared with previous years, a Reuters poll showed, as Beijing continues to encourage lending to fuel ailing domestic demand.
Banks likely issued around RMB 860 billion ($195 billion) in net new loans last month, according to the experts surveyed, appearing at first to be a sizeable drop from the RMB 1.38 trillion extended in September.
However, given that October is traditionally a quieter month for new loan activity, this year’s month-on-month gain is still well above the average level.
Policymakers have urged lenders to up their debt issuance in recent months, particularly to small- and medium-sized businesses that have been cash-starved in favour of lower-risk credit targets in the state sector.