China Bank loans are declining in April
New bank loans in China fell even more than the expacted talent in April last April, as the long trade war with the United States has reduced the market voting in a month, which usually sees the slowing of debt demand.
Chinese banks have submitted new loans in yuan worth 280 billion yuan ($ 38.87 billion) in April, which is less than analysts’ expectations, and declining from 3.64 trillion yuan last March, according to Reuters Bank.
Analysts estimate that new yuan loans will reach 700 billion yuan in April, in April, compared to 730 billion yuan at the same time. “Bank loans have resumed their slowdown last month, but in general the credit increase in the issue of government bonds has increased,” Capital Economics said in a note.
“Monetary facility helps to increase private credit demand in the coming months. We only hope to recover a little,” she said.
Total loans in the yuan rose by 7.2 percent in April. Analysts estimate that the rate will not change at 7.4 percent in March.
Central Bank does not provide monthly details, but the Reuters released the April number on Wednesday from January to April based on the data of the Central Bank and counted the number from January to March.
Banks have provided new loans with a total of 10.06 trillion yuan in the first four months, declining from 10.19 trillion yuan in the same period last year. Generally loans are slow in April, when Chinese banks carry it early in the year, to earn distinguished customers and increase their market share.
Families, including the mortgage, declined by 521.6 billion yuan in April, compared to 985.3 billion yuan in March. According to Reuters Accounts, corporate loans fell to 610 billion yuan from 2.84 trillion yuan.
However, in general, the long real estate crisis, the debt of local governments, and the inflation of inflation are weakened. In April, the trade war with the United States increased, reducing credit appetite, and increased the current care between families and organizations.
Analysts fear that the Chinese economy has grown faster than expected in the first quarter, and the government has maintained a 5 percent growth target this year, but that American customs functions are moment.
Last week, the Central Bank had intensified its efforts to reduce the impact of a commercial conflict with Washington, declaring a set of stimuli measures such as reducing interest rates and pumping large liquidity.
Since then, a meeting between US officials and Chinese in Switzerland in Switzerland last Saturday has aroused hopes of reducing tensions, but investors are slowly negotiating in view of continuous global financial losses.
On Monday, the US Administration said the two sides agreed to the 90 -day interruption, which would reduce their customs duties on Washington and Beijing imports.
The Central Bank data issued on Wednesday showed an increase of 8.0 per cent on an annual basis, which exceeded 7.3 per cent analysts in the Reuters Poll and increased 7.0 per cent in March.
The general measurement of credit and liquidity in the entire social financing, economy, accelerated by 8.7 percent compared to the previous year, accelerated 8.4 percent in March and recorded the highest level in 13 months.
The issuance of more government bonds with the aim of increasing the economy has contributed to the overall growth.
The total social financing has financing forms outside the public budget, which is outside the traditional banking system, primary public subscriptions, loans and bond sales from credit companies.
