Home Business News New Chinese yuan loans in March rose again, but concerns about tightening...

New Chinese yuan loans in March rose again, but concerns about tightening increased: Reuters polls.


© Reuters. FILE PHOTO: The man in the mask walks past the People’s Bank of China headquarters, the central bank, in Beijing

BEIJING (Reuters) – New bank loans in China are expected to rebound in March from a sharp decline in February, a Reuters poll showed, as the central bank goes Tight set between supporting the economy to recover and preventing debt risks.

Chinese banks are estimated to have issued 2.45 trillion yuan ($ 373.96 billion) in new yuan net loans last month, up from 1.36 trillion yuan. in February, according to the average estimate of the survey of 25 economists.

But that would be a 14 percent drop from the 2.85 trillion yuan issued the same month a year earlier, when tough measures to stem the coronavirus pandemic crippled much of the economy.

After record credit growth in January, new lending plummeted in February. However, if the March data met the forecast, total lending in the first quarter would hit a record high of 7.39 trillion yuan.

The credit trend is being closely watched as investors are increasingly worried about policy tightening as Beijing seeks a way out of its pandemic emergency as the world’s second-largest economy is on a roll. quickly regained motivation. The country’s blue-chip stock index fell more than 5% in March, its worst monthly performance of the year.

China’s central bank has pledged to stabilize the country’s overall debt level, which spiked last year due to stimulus measures, but said it will avoid a sudden policy change and will continue. support ailing small businesses.

Last year, the central bank launched a series of measures including cutting interest rates and reserve ratios to support the economy. But it kept the standard lending rate, the base rate on the loan, unchanged since May.

The poll shows that M2 money supply is broadly expected to grow 9.6% in March from a year earlier, down from a 10.1% year-on-year increase in February. probe shows. Annual RMB loans are expected to grow 12.6% in March, lower than the 12.9% increase in February.

Premier Li Keqiang said in his annual work report that China will keep its growth in money supply and total social finances in line with nominal economic growth this year.

China sets a modest annual economic growth target of over 6%, as policymakers plan carefully for one year due to a COVID-19 disruption.

Analysts say the economy is expected to grow more than 8% by 2021 and added that the recovery will be from a low of 2.3% in 2020 and that the recovery remains uneven.

In March, the TSF is expected to grow to 3.7 trillion yuan from 1.71 trillion yuan in February.

The data is expected to be released between April 12 and 19.

($ 1 = 6.5515 yuan)

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