China’s bank lending declined more-than-expected in July, data from the People’s Bank of China revealed Tuesday.
Banks extended CNY 992.7 billion loans in July. Economists had forecast bank lending to fall to CNY 1.2 trillion from CNY 1.81 trillion in June.
The broad money supply M2 climbed 10.7 percent annually in July, which was slower than the 11.1 percent rise economists’ had forecast.
Iris Pang, an ING economist, said “With such unexpectedly small credit growth, we believe China’s central bank has used actions rather than words to tell the market that it won’t be easing any more this year.”
Tightening monetary policy is only expected when the economy is overheating, and it is unlikely to happen in 2020, the economist added.