China’s new bank loans remained weak in May after slowdown in April, estimate analysts
DATA VIEWS & ANALYSIS
China’s new bank loans remained weak in May after slowdown in April, estimate analysts
DATA VIEWS & ANALYSIS

China’s new bank loans remained weak in May after slowdown in April, estimate analysts

 

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China’s new bank loans are expected to reached about 1.4 trillion yuan in May, according to Guotai Junan Securities. 

New medium- and long-term loans to the household sector is expected to reach 250 billion yuan in May, about 150 billion yuan higher than a year earlier, but lower than the normal level in previous years, while new short-term loans to the household sector is expected to reached about 200 billion yuan, about 16 billion yuan higher than a year earlier, it said.

Chinese banks likely extended 1.5 trillion yuan of new loans in May, about 390 billion yuan lower than a year earlier, and the growth of new bank loans likely slowed by 0.3 percentage points to 11.5%, estimates by Zheshang Securities. 

The weaker performance was due to high base last year, the strong bank loan offering in the first quarter, sluggish corporate credit demand, said analysts.