Key facts
- China's new bank lending in July is expected to fall to 45 billion yuan.
- New bank lending in June was 1.61 trillion yuan.
- Economists cite subdued credit demand as a key factor for the July decline.
- A seasonal slowdown is also identified as a reason for the projected drop.
- Broader money supply growth is expected to ease slightly in July.
New bank lending in China for July is projected to fall dramatically, with economists polled by Reuters anticipating a figure of just 45 billion yuan. This represents a substantial decrease from the 1.61 trillion yuan recorded in June. The primary drivers identified for this expected slump are subdued credit demand from businesses and consumers, coupled with a seasonal slowdown that typically impacts economic activity during this period. In addition to the sharp drop in new loans, broader money supply growth, specifically M2, is also expected to ease slightly. This overall picture suggests continued economic headwinds and cautious financial conditions within China.