china’s credit growth poses challenge
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

China’s credit growth poses challenge

Arab Today, arab today

Arab Today, arab today China’s credit growth poses challenge

January’s new yuan loans were the second highest on record as banks stepped up lending
Beijing - Arab Today

Chinese banks kept up a strong pace of lending at the start of the year, even with signs of tightening by the central bank, highlighting the challenge Beijing faces as it tries to deflate asset bubbles without risking a blow to economic activity. 
January’s new yuan loans were the second highest on record as banks stepped up lending, indicating policymakers’ efforts to rein in risks have not reduced bank credit being extended to China’s highly-indebted corporate sector.
A spike in off-balance sheet lending also showed demand for credit remained strong, while inflation picked up to multi-year highs, though analysts expect any tightening to be gradual as China’s economic recovery is fragile.
“This is not across the board or broad tightening that we normally see...we think the recovery momentum is driven by the recovery in prices, especially payment protection insurance (PPI), rather than any real return of real demand,” said Betty Wang, senior China economist at ANZ in Hong Kong.
“We do not think the economy is solid enough to counter broad-based or aggressive tightening.”
Much of the increase in consumer prices in January was due to a seasonal rise in food and travel costs ahead of the Lunar New Year holiday, while producer price gains slowed by half on-month.
Analysts say the People’s Bank of China (PBoC) is raising rates on some primary money rates to signal to markets that it is keeping an eye on financial risks, but will keep liquidity ample, which includes continued expansion of credit.
Chinese banks added a net 2.03 trillion yuan ($295.74 billion) in new loans in January, while credit growth including non-bank lending rose 3.74 trillion yuan.
The expansion in broad M2 money supply was stable while growth in outstanding credit was also on trend at 12.8 percent, supporting views the central bank will keep monetary conditions basically stable, with some marginal tightening targeting specific sectors such as property.
Indeed, to help cool the heated housing market, banks in some big Chinese cities have already started to lower discounts on lending rates for first-time home buyers, the China Securities Journal reported earlier this month.
Chinese banks usually “front load” loans early in the year after the government renews their credit quotas, so data over the next few months will provide a better picture for credit growth trends this year.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china’s credit growth poses challenge china’s credit growth poses challenge

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china’s credit growth poses challenge china’s credit growth poses challenge

 



GMT 05:03 2017 Saturday ,21 October

EMPC denies transfer to new administrative capital

GMT 10:50 2014 Friday ,07 November

UAE Fables and Folklore

GMT 12:10 2017 Tuesday ,07 March

Poachers kill rare giant elephant in Kenya

GMT 00:31 2016 Thursday ,08 December

Kuwaiti-European group considers investing $1bn

GMT 12:31 2017 Thursday ,06 April

At 73, Barry Manilow comes out of closet

GMT 18:34 2017 Friday ,10 February

Malabar Gold to open 11th Saudi showroom in Jubail

GMT 16:18 2017 Monday ,02 October

Saudi university to open driving school for women

GMT 16:20 2017 Wednesday ,18 October

French parliament adopts tough anti-terror bill

GMT 02:18 2017 Tuesday ,03 October

Egypt's Sisi says spoke to Donald Trump by telephone

GMT 06:51 2017 Wednesday ,31 May

Nokia 3310 now available for purchase in KSA

GMT 08:29 2017 Wednesday ,29 March

Britain to launch EU exit process

GMT 11:12 2016 Sunday ,27 November

GMIS a platform for technology standardisation

GMT 01:28 2018 Friday ,19 January

Emirates announces $16 bn deal

GMT 10:49 2011 Monday ,28 November

Bahraini opposition rebuffs government

GMT 08:53 2017 Friday ,29 December

Israel rabbis lead prayers for rain at Western Wall
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday