By Kevin Yao and Ella Cao
BEIJING- China’s new yuan loans likely jumped in September from August, a Reuters poll showed on Wednesday, as the central bank ramps up stimulus to drive the sputtering economy towards this year’s growth target.
Banks likely issued 1.87 trillion yuan ($264.75 billion) in net new yuan loans last month, the median of 16 economists’ estimates showed.
That would more than double August’s 900 billion yuan but fall short of the 2.31 trillion yuan issued in the same month a year earlier.
In an effort to spur the flagging economy, the central bank in late September unveiled its most aggressive monetary stimulus package since the COVID-19 pandemic, coupled with extensive property market support including mortgage rate cuts.
The central bank has promised further policy easing.
Chinese leaders also pledged to deploy “necessary fiscal spending” to meet this year’s growth target of around 5 percent.
On Tuesday, the head of China’s state planner said the country was “fully confident” of achieving the 2024 growth target but refrained from introducing stronger fiscal steps, disappointing investors who had bet that more policy support will be needed to get the economy back on solid footing.
Outstanding yuan loans likely rose 8.3 percent in September from a year earlier, the poll showed, down from 8.5 percent in August. The forecast figure would mark a fresh record low, highlighting weak household and corporate confidence despite lower interest rates. – Reuters
