Tuesday, October 23, 2018
 
Columnist
Martin Hennecke

Yuan loans beat expectations
 
13/02/2018
 
China's banks extended a record 2.9 trillion yuan (HK$3.58 trillion) in new yuan loans in January, blowing past expectations and nearly five times the previous month as policymakers aim to sustain solid economic growth while reining in debt risks.

While Chinese banks tend to front-load loans early in the year to get higher-quality customers and win market share, the figure was even higher than the most bullish forecast by economists in a Reuters poll.

Net new loans beat the previous record of 2.51 trillion yuan in January 2016, which is likely to support growth not only in China but may underpin liquidity globally.

Meanwhile, HSBC's one-month RMB Time Deposit rate will be up to 2.7 percent while the three-month rate is to be up to 3.5 percent.

Elsewhere, Chinese firms selling bonds must publicly state the funds raised do not add to local government debt and that they are not serving any government financing functions, a notice from the the National Development and Reform Commission said.

In addition, the China Insurance Regulatory Commission said insurance firms must cap their outstanding offshore financing backed by domestic guarantees at 20 percent of net assets as of the end of the previous quarter.

Previous news : HSBC to blaze trail with China listing
 

 

 
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