The issuance of new loans in China increased more than expected and reached a record level in January, after the Central Bank withdrew moves to revive slow economic recovery.
Therefore, increasing expectations are that the state will jump in additional incentives in the coming months, because new US customs rates are threatening to increasing pressure on the Chinese economy.
Chinese banks issued new loans in the amount of 5.13 billion of Yuan ($ 706.40 billion), which is more than in December, see the data of the Kiens National Bank published on Friday, and far above the expectations of analysts .
Analysts interviewed by Reuters forecasted to increase at 4.5 trillion Yuan in January, near the current record of 4.92 trillion a year earlier.
Chinese banks are usually happy to issue loans at the beginning of the calendar year, when they also competes with better customers and market share in the domestic market, but some analysts warn that further economic uncertainty continues to burdens loans for loans.
Loans to households, including housing loans, was climbed to 443.8 billion in January, with 350 billion in December, while loans reached 4.78 billion Yuan, with 490 billion in December, the Central Bank data show data.
New loans amounted to a total of 18.09 trillion Yuan last year, which is a decline in 2225 trillion. Year, and the lowest level of 2019. year, as companies and consumers are still careful in taking over the major debts , because of uncertain economic appearance.
The economy was 2024. increased by 5 percent, which met the official goal of the Government, but recovery after the pandemic was incomplete, and exports and production have made up their losses due to poor domestic consumption.
Beijing will keep the target growth of about 5 percent this year, but the analysts are not sure how fast the government can revive the weak domestic demand, even with new US President Donald Trumps that make higher pressure on Chinese exporters.
In order to maintain growth and opposed the growing external pressures Beijing promised greater fiscal spending, increasing indebtedness, as well as the mitigation of monetary policy, transmit finance HR.
The Central Bank said on Thursday that “at the appropriate moment” will adapt its monetary policy and use instruments such as interest rates and compulsory reserves of banks (RRR) to support the economy that struggles with increasing external difficulties.
China is now facing the new trade war with the US, after the President Donald Trump introduced customs duties of 10 percent on all Chinese goods from imports. In response to that, Beijing is from 10. February announced customs up to 15 percent to individual products from the USA.
In September, Beijing has increased measures to revive the economy, including the reduction of interest rates, a hill package of 10 trillion yuan for the provincial authorities, as well as tax incentives to revive demand on the real estate market.
Investors await the unfolding of the annual session of parliament in March, when the government is expected to present new incentive measures, together with the new economic goals for 2025.
