China Household Borrowing Posts Record Drop
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Chinese household borrowing posted a record drop in February, underscoring weak consumer demand even as strong corporate lending supported overall credit.
Household loans fell by 650.7 billion yuan ($94 billion) during the month, the largest contraction on record, according to data released Friday by the People’s Bank of China.
Total social financing (TSF) — a broad measure of credit and liquidity in the economy — increased by 2.38 trillion yuan in February, exceeding economists’ average forecast of 1.86 trillion yuan in a Caixin survey. New yuan loans reached 900 billion yuan, slightly below expectations.
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- Chinese household loans fell by 650.7 billion yuan ($94 billion) in February 2024, the largest drop on record.
- Despite weak household borrowing, total social financing rose by 2.38 trillion yuan, surpassing forecasts.
- Corporate lending increased by 1.49 trillion yuan, offsetting weaker household and bond financing.
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