Latest news with #yuanloans
Reuters
21 hours ago
- Business
- Reuters
China's May lending seen tripling on monetary measures, trade truce
BEIJING, June 9 (Reuters) - China's new yuan loans more than tripled in May compared with a month ago, matching the borrowing appetite in the same period last year, as a temporary trade truce between China and the United States and new government measures helped boost credit demand. Chinese banks are estimated to have issued 850 billion yuan ($118.27 billion) in net new yuan loans last month, according to 18 economists polled by Reuters. April saw 280 billion yuan loans distributed. In mid-May, China and the United States struck a 90-day truce in their bruising tariff war and rolled back most of the triple-digit levies they heaped on each other's goods in early April. Adding to the positive sentiment was Beijing's raft of monetary easing measures last month including interest rate cuts and a major liquidity injection, though Citi Research analysts said the steps may not make an immediate impact on credit demand. "Bills discount rate stayed low in May, and we expect new RMB loans at RMB900 billion, largely in line with last May's level," Citi Research said in a note last week. New yuan loans in May are typically higher than in April as banks begin work to reach their quarterly loan targets. Factory activity at the world's largest manufacturing hub contracted for a second month in May, as trade tensions with the United States remain high and speculation mounts Beijing would roll out further stimulus measures to underpin economic growth. Adding to the external headwinds, frail domestic demand remains a major drag on the world's second-largest economy as households grapple with income pressure and keep a tight leash on spending. A phone call between U.S. President Donald Trump and Chinese leader Xi Jinping on Thursday kept the lid on tensions but left key trade issues such as Beijing's control on rare earth exports and Washington's curbs on chip-related exports to further talks set to take place in London later on Monday. Broad M2 money supply, which measures cash in circulation, and a set of deposits including time deposits to corporates plus household savings, is expected to have increased 8.1% last month, up from the 8.0% in April. Outstanding yuan loans in May were seen matching the pace of growth in April at 7.2% from a year earlier, according to the poll. A broad measure of credit and liquidity that is Total Social Financing (TSF) likely grew to 2.3 trillion yuan in May from 1.16 trillion yuan in April, the poll showed. Any acceleration in government bond issuance could help boost growth in TSF. The measure includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales. ($1 = 7.1871 Chinese yuan renminbi)
Yahoo
21 hours ago
- Business
- Yahoo
China's May lending seen tripling on monetary measures, trade truce: Reuters poll
By Liz Lee BEIJING (Reuters) - China's new yuan loans more than tripled in May compared with a month ago, matching the borrowing appetite in the same period last year, as a temporary trade truce between China and the United States and new government measures helped boost credit demand. Chinese banks are estimated to have issued 850 billion yuan ($118.27 billion) in net new yuan loans last month, according to 18 economists polled by Reuters. April saw 280 billion yuan loans distributed. In mid-May, China and the United States struck a 90-day truce in their bruising tariff war and rolled back most of the triple-digit levies they heaped on each other's goods in early April. Adding to the positive sentiment was Beijing's raft of monetary easing measures last month including interest rate cuts and a major liquidity injection, though Citi Research analysts said the steps may not make an immediate impact on credit demand. "Bills discount rate stayed low in May, and we expect new RMB loans at RMB900 billion, largely in line with last May's level," Citi Research said in a note last week. New yuan loans in May are typically higher than in April as banks begin work to reach their quarterly loan targets. Factory activity at the world's largest manufacturing hub contracted for a second month in May, as trade tensions with the United States remain high and speculation mounts Beijing would roll out further stimulus measures to underpin economic growth. Adding to the external headwinds, frail domestic demand remains a major drag on the world's second-largest economy as households grapple with income pressure and keep a tight leash on spending. A phone call between U.S. President Donald Trump and Chinese leader Xi Jinping on Thursday kept the lid on tensions but left key trade issues such as Beijing's control on rare earth exports and Washington's curbs on chip-related exports to further talks set to take place in London later on Monday. Broad M2 money supply, which measures cash in circulation, and a set of deposits including time deposits to corporates plus household savings, is expected to have increased 8.1% last month, up from the 8.0% in April. Outstanding yuan loans in May were seen matching the pace of growth in April at 7.2% from a year earlier, according to the poll. A broad measure of credit and liquidity that is Total Social Financing (TSF) likely grew to 2.3 trillion yuan in May from 1.16 trillion yuan in April, the poll showed. Any acceleration in government bond issuance could help boost growth in TSF. The measure includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales. ($1 = 7.1871 Chinese yuan renminbi) Sign in to access your portfolio
Yahoo
21 hours ago
- Business
- Yahoo
China's May lending seen tripling on monetary measures, trade truce: Reuters poll
By Liz Lee BEIJING (Reuters) - China's new yuan loans more than tripled in May compared with a month ago, matching the borrowing appetite in the same period last year, as a temporary trade truce between China and the United States and new government measures helped boost credit demand. Chinese banks are estimated to have issued 850 billion yuan ($118.27 billion) in net new yuan loans last month, according to 18 economists polled by Reuters. April saw 280 billion yuan loans distributed. In mid-May, China and the United States struck a 90-day truce in their bruising tariff war and rolled back most of the triple-digit levies they heaped on each other's goods in early April. Adding to the positive sentiment was Beijing's raft of monetary easing measures last month including interest rate cuts and a major liquidity injection, though Citi Research analysts said the steps may not make an immediate impact on credit demand. "Bills discount rate stayed low in May, and we expect new RMB loans at RMB900 billion, largely in line with last May's level," Citi Research said in a note last week. New yuan loans in May are typically higher than in April as banks begin work to reach their quarterly loan targets. Factory activity at the world's largest manufacturing hub contracted for a second month in May, as trade tensions with the United States remain high and speculation mounts Beijing would roll out further stimulus measures to underpin economic growth. Adding to the external headwinds, frail domestic demand remains a major drag on the world's second-largest economy as households grapple with income pressure and keep a tight leash on spending. A phone call between U.S. President Donald Trump and Chinese leader Xi Jinping on Thursday kept the lid on tensions but left key trade issues such as Beijing's control on rare earth exports and Washington's curbs on chip-related exports to further talks set to take place in London later on Monday. Broad M2 money supply, which measures cash in circulation, and a set of deposits including time deposits to corporates plus household savings, is expected to have increased 8.1% last month, up from the 8.0% in April. Outstanding yuan loans in May were seen matching the pace of growth in April at 7.2% from a year earlier, according to the poll. A broad measure of credit and liquidity that is Total Social Financing (TSF) likely grew to 2.3 trillion yuan in May from 1.16 trillion yuan in April, the poll showed. Any acceleration in government bond issuance could help boost growth in TSF. The measure includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales. ($1 = 7.1871 Chinese yuan renminbi) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
09-05-2025
- Business
- Reuters
China's April bank lending seen plunging from a month ago
BEIJING, May 9 (Reuters) - China's April new yuan loans probably shrank significantly from March levels as the trade war with the United States further weighed on the market at a traditionally quiet time of the year, according to a Reuters poll on Friday. Chinese banks are estimated to have issued 700 billion yuan ($96.58 billion) in net new yuan loans last month, less than one fifth of the 3.64 trillion yuan distributed in March, according to the median estimates of 17 economists. Analysts at Citi Research said new credit could be soft for April, calling it a typically "low season" for loan demand. Although, M1 and M2 supply could improve, they said. "Growth of monetary base and outstanding credit is set to jump in April with the low base from financial tightening last April kicking in," Citi said. The data is due to be released from May 10 to 15. Credit demand has fluctuated in the past few months, as borrowers' confidence tracks pledges made by Chinese policymakers to bolster an economy grappling with a prolonged property crisis, high local government debt and deflationary pressures. A tit-for-tat tariff dispute with the United States that escalated last month, on top of already cautious household and business spending, curbed the appetite for credit. China's manufacturing activity contracted at the fastest pace in 16 months in April, after the U.S. tariffs snapped two months of recovery. Still, China kept a growth target of around 5% this year, having promised more initiatives to support consumption. Beijing stepped up efforts to cushion the economic damage caused by the trade war with the U.S. this week, announcing a raft of stimulus measures, including interest rate cuts and a major liquidity injection. The announcements come ahead of a meeting between top U.S. and Chinese economic officials in Switzerland this weekend, seen as an opportunity to begin resolving duties on goods imports between the world's two largest economies that have soared well above 100%. Broad M2 money supply last month is expected to have grown 7.3%, up from the 7.0% in March. Outstanding yuan loans probably rose 7.4% in April from a year earlier, the poll showed, matching the 7.4% pace in March. Total Social Financing (TSF), a broad measure of credit and liquidity, likely grew to 1.22 trillion yuan in April from 5.89 trillion yuan in March, the poll showed. Any acceleration in government bond issuance could help boost growth in TSF. The measure includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales. ($1 = 7.2478 Chinese yuan renminbi)
