Chinese Lending Falls Amid Tightened Credit

Data released by the People's Bank of China indicates that new loans extended by mainland banks dropped to 532.8 billion yuan (HK$610.86 billion) last month, down from the 603.4 billion yuan extended in June and lower than the 600 billion yuan expected by many economists.

 

According to the South China Morning Post, loans given from January to July this year totalled 5.16 trillion yuan, nearly 70% of the full-year target.

 

Citing a circular issued Tuesday, the Post says the China Banking Regulatory Commission has asked banks to transfer the off-balance-sheet loans onto their books by the end of 2011 and make provisions for those that may default.

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