Loan Demand Remains Weak Despite Higher May Figure

(Beijing) -- New figures for loans issued by Chinese commercial banks in May have exceeded market expectations, boosted by smaller banks and rising long- and medium-term lending. However, the structure of loan issuance indicates that market demand for credit remains weak.

The central bank said on June 11 that yuan-dominated new loan issuance in May totaled 793.2 billion yuan, increasing 111.4 billion yuan from April and 241.6 billion more than in May 2011.