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Banks lend 703.9b yuan in August, more than expected
By Feng Jianmin |
September 11, 2012, Tuesday
|
Online Edition
Online Edition
NEW yuan lending in August rose unexpectedly as the government strived to shore up the slowing economy.
Chinese banks extended 703.9 billion yuan (US$111 billion) of local currency loans in August, 163.8 billion more than July and 155.5 billion more than last August, the People's Bank of China said in a statement today.
The size was also the biggest of any August on record, beating economists' expectations of around 600 billion yuan according to surveys by Bloomberg and Reuters.
"The better-than-expected data showed that the country has indeed stepped up support to lending," said Li Huiyong, a chief analyst of Shenyin & Wanguo Securities Co. "The increase of liquidity by loans offset an outflow of foreign currencies and will help boost the economy."
The central bank data also showed that total social financing, including loans, bank acceptance bills, corporate bonds and equity financing, reached 1.24 trillion yuan in August, 188.5 billion yuan more than in July and 166.6 billion more than in August last year.
The combined social financing in the first eight months was 10.07 trillion yuan, 691.5 billion more than last year.
Analysts also warned that the effects of a new round of investment may take time to reveal.
"High lending data may help improve market sentiment, but there are still uncertainties over funding sources for infrastructure projects," said Zhong Zhengsheng, a senior analyst of Everbright Securities. "Local governments are still cash-strapped and it's improper for the government to intervene too much in economy."
Chinese banks extended 703.9 billion yuan (US$111 billion) of local currency loans in August, 163.8 billion more than July and 155.5 billion more than last August, the People's Bank of China said in a statement today.
The size was also the biggest of any August on record, beating economists' expectations of around 600 billion yuan according to surveys by Bloomberg and Reuters.
"The better-than-expected data showed that the country has indeed stepped up support to lending," said Li Huiyong, a chief analyst of Shenyin & Wanguo Securities Co. "The increase of liquidity by loans offset an outflow of foreign currencies and will help boost the economy."
The central bank data also showed that total social financing, including loans, bank acceptance bills, corporate bonds and equity financing, reached 1.24 trillion yuan in August, 188.5 billion yuan more than in July and 166.6 billion more than in August last year.
The combined social financing in the first eight months was 10.07 trillion yuan, 691.5 billion more than last year.
Analysts also warned that the effects of a new round of investment may take time to reveal.
"High lending data may help improve market sentiment, but there are still uncertainties over funding sources for infrastructure projects," said Zhong Zhengsheng, a senior analyst of Everbright Securities. "Local governments are still cash-strapped and it's improper for the government to intervene too much in economy."
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