Story thread · 2 reports / 2 sources

China new bank loans contract again in July, the second time this year

investinglive.com · 2h · first reportShare

Well, it's starting to look like a feature and not a bug anymore. The latest credit data for the month of July sees China new bank loans fall into contraction again, shrinking by ¥340 billion. That is a miss on expectations, which were expecting lending to increase by ¥45 billion instead. That is a rather disappointing estimate and sees new yuan loans from January to July total to just ¥10.38 trillion. That is a marked fall compared to the ¥12.88 trillion total from January to July last year. This marks back-to-back July months now that China new bank loans have contracted. While it may be tied to some seasonal factors, weak household credit demand cannot be understated in being a drag on lending in the Chinese economy. Once again, data like this will just continue to cast doubts over the resilience of the Chinese economy despite the fact that top-level data continues to indicate that "everything is fine". While the property market crisis did lead to some slowdown in credit demand, the