Credit Growth Slows in July as Authorities Dial Back Stimulus
What’s New: China’s credit growth slowed in July as authorities fine-tuned their monetary policy stance and pared back the expansion of stimulus.
Chinese banks issued 992.7 billion yuan ($142.5 billion) of new loans in the month, 63 billion yuan less than the same time last year and lower than estimates of 1.2 trillion yuan. It is the first year-on-year drop in monthly loan growth since the Covid-19 outbreak, central bank data showed.
Total social financing added 1.69 trillion yuan in July, up 406.8 billion yuan from a year ago but less than the 3.4 trillion yuan in June.
The background: Analysts attributed the slowing credit growth to weakening stimulus as policymakers shift away from crisis mode to a more targeted approach.
In June, authorities signaled a slower pace of stimulus policies by calling for reasonable credit growth as the country’s economic recovery picks up steam.
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