China’s new lending slumps to lowest since 2009

Analysts believe PBoC has limited room to cut interest rates amid current yuan weakness


Chinese banks extended the smallest amount of lending since 2009 in July, signalling weak credit demand amid the country’s economic slowdown.

New loans amounted to 345.9 billion yuan ($47.6 billion) in July, plunging 89% from 3.05 trillion yuan in June, data released by the People’s Bank of China on August 11 showed. The figure was below analysts’ expectations and much lower than the 679 billion yuan extended in July 2022.

Of the new loans, household loans, mostly mortgages, shrank by 200.7

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