China Long-term Business Loans Rising: News

China's increased financing support in areas such as manufacturing and infrastructure has led to an increase in medium-to-long term loans which totaled CNY 1.9 trillion in September, up CYN 20.47 billion y/y, the Financial News reported on Monday citing Yuan Xiaohui, a researcher from the BOC Research Institute. The increasing share of medium to long term loans in the credit structure will require banks to balance assets and liabilities to counter the effects of interest rate fluctuations and provide ample liquidity and capital when needed, Yuan said. Medium-to-long term loans to residents are likely to decrease in October due to new housing loan limitations, and loans to businesses are likely to maintain the increasing trend, the News cited Wang Qing, an analyst from Golden Credit Rating.