China’s economy continues to amass a range of bleak data from property and trade to manufacturing and demographics, and on Friday the People’s Bank of China reported that new lending in July fell to the lowest level since 2009.
- In July, the volume of loans doled out from Chinese banks hit their lowest amount since 2009.
- The People’s Bank of China said new loans reached 345.9 billion yuan in July, less than half the amount expected by Bloomberg economists.
- A key measure of credit also fell well below estimates in July, per Bloomberg, signaling weak demand.
Chinese banks doled out 345.9 billion yuan in new loans last month, well below the 780 billion yuan economists had expected, according to a Bloomberg report and survey.
The smaller volume signals that demand for loans is deteriorating, a point further supported by July’s sharp drop-off in aggregate financing, a measure of credit.
The data release also showed mid- and long-term loans to households, a gauge for mortgages, shrank by 67.2 billion yuan, and that loans to companies also dropped month over month in July to 271.2 billion yuan.
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