China new loans rebound, but overall credit conditions stay tight
Beijing — China’s new bank loans rebounded in September after dipping in the two previous months, central bank data showed, but overall credit conditions stayed tight in an economy chilled by an ongoing tariff war with the US. Growth of outstanding total social financing, a reliable gauge of overall credit conditions, slowed to 10.6% in September from 10.8% in August, making it, according to Capital Economics, the weakest since 2005. “We think that officials will soon need to turn to other measures, such as cuts to benchmark interest rates or a relaxation of constraints on off-budget local government borrowing, in order to shore up credit growth and economic activity,” Chang Liu, China Economist for Capital Economics in London, said in a note. A Reuters poll published on Tuesday, however, showed most analysts expected the benchmark lending rate to be left unchanged at 4.35% through to the end of 2019, as the central bank focuses on other monetary policy levers, such as interbank rat...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.