New bank loans in China rise more than expected in September

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New bank loans in China rise more than expected in September




FILE PHOTO. Woman with a mask in front of the headquarters of the People's Bank of China, the central bank, in Beijing


© Reuters/Jason Lee
FILE PHOTO. Woman with a mask in front of the headquarters of the People’s Bank of China, the central bank, in Beijing


BEIJING, Oct 14 (Reuters) – New bank loans in China grew more than expected in September, while overall credit growth also accelerated amid the continued recovery of the economy since its coronavirus-induced crash.

The country’s economic outlook has improved thanks to aggressive stimulus from the government and recent data pointing to a further improvement in the health crisis generated by COVID-19.

Lenders granted 1.9 trillion yuan ($ 282.3 billion) in new loans in the local currency, up 48.4% from August and above analysts’ expectations, according to data released by the People’s Bank of China on Wednesday.

This pushed bank lending in the first nine months of the year to 16.26 trillion yuan, surpassing a previous peak of 13.63 trillion yuan in the first three quarters of 2019.

Analysts polled by Reuters had expected a rise in new loans of 1.7 trillion yuan from 1.28 trillion the previous month, but quite in line with the previous year.

Although the central bank accelerated its support policy earlier in the year, after broad movement restrictions stifled economic activity, it has been reluctant to pass further relief measures lately.

The world’s second-largest economy has recovered steadily from the pandemic, with its imports growing at their fastest annual pace in September and strong export earnings expanded.

($ 1 = 6.7313 yuan)

(Reporting by Lusha Zhang and Ryan Woo; edited in Spanish by Carlos Serrano)

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