China Credit Growth Slows More Than Expected Despite Easing

(Bloomberg) — China’s credit expansion slowed in February as a long holiday and the slumping housing market meant people and companies borrowed less, raising expectations that the central bank will need to do more to support growth.

Banks lent 1.2 trillion yuan ($194 billion) in the month, down from 4 trillion yuan in January and less than in February last year, the People’s Bank of China (PBOC) said Friday. A key indicator of home mortgages declined for the first time in at least 15 years despite efforts by the central bank and other financial institutions to boost borrowing by cutting rates and lowering down payments.