A clerk counts Chinese 100 yuan banknotes at a branch of a foreign bank in Beijing, China January 4, 2016. -Reuters
China's new bank loans likely rose in September but other key gauges of credit growth remained lackluster, a Reuters poll showed, reinforcing expectations Beijing needs to deliver more support to stabilize the economy as trade pressures build. Chinese regulators have been trying to boost bank lending and lower corporate financing costs for over a year, but the pick-up in loan growth has been modest compared to previous rounds of stimulus, and economic activity has continued to slow.
Analysts say the problem is not a lack of credit, but weakening business and consumer confidence as the US-China trade war drags on, weighing on activity from manufacturing and investment to retail sales.
Chinese banks are expected to have issued 1.4 trillion yuan ($196.02 billion) in net new yuan loans last month, up 16% from 1.21 trillion yuan in August but largely in line with the tally in September last year, according to a median estimate in a Reuters survey of 30 economists.
Broad M2 supply was seen unchanged from 8.2% growth in August. But growth of outstanding loans was expected to decelerate for a sixth straight month.Annual growth of outstanding loans in September was seen edging down to 12.3% in September, the lowest since July 2002.
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