China bank loans still slow into August

From Shanghai Securities News via Forexlive:

The Big Four state-owned banks extended CNY131 billion in new loans in August through the 24th, up from CNY56 billion a week ago, unidentified sources said.

Banks’ credit officials said some banks, especially small and medium-sized ones, are reluctant to lend due to concerns about rising non-performing loans

A report by Shenyin Wanguo Securities said some banks have tightened lending approval to privately-owned enterprises and small business while smaller lenders have resumed mortgage lending as it carries fewer risks.

The newspaper also said deposits of the big four shrank by about CNY480 billion as of August 24

Recall that total new yuan loans were 385.2bn in July:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.