Sizzling Bank Lending Cools Down in July

Data from China's central bank indicate that new loans totaled 355.9 billion yuan in July, down 77 percent from June, and 25.9 billion yuan less from the same period in 2008.

Such numbers, although dramatic are in many ways predictable. Actually, the swift contraction in new lending does not seem to be related to any policy reversal. Many in the industry predict another small loan surge this September.