China’s new yuan loans expected to rise in November from 22-month lows

Hellenic Shipping News | Dec 7, 2019 at 12:00 AM
  • China’s new bank loans are expected to rebound in November from a 22-month low the previous month as the central bank lowered some key lending rates and encouraged more credit growth to prop up the slowing economy, a Reuters poll showed.
  • To boost bank lending, the People’s Bank of China (PBOC) has pumped out trillions of yuan in liquidity by repeatedly cutting banks’ reserve requirement ratios since early 2018.
  • Beijing has been leaning more heavily on fiscal stimulus to weather the current downturn, announcing 2 trillion yuan in tax and fee cuts this year and 2.15 trillion yuan in special local government bond issuance to finance infrastructure projects.