Financing Demand by China Manufacturers Seen Weakening: Times

A slowdown in Chinese companies' longer-term loans for the first time this year signaled a weakening demand for financing by the manufacturing sector, even as the government continued to pump more credit to sustain the economy, the Securities Times reported citing analysts. The increase in new corporate medium and long-term loans in July is CNY103.1 billion less than that in the same period last year, the newspaper said. Aggregate financing in July dropped, reflecting a crackdown on off-balance sheet financing and weaker government bond financing, the newspaper said citing Wen Bin, the chief researcher with Minsheng Bank. China's money supply, credit, and social financing data may, however, rebound in August helped by the boost from the PBOC's RRR cut announced in July, and as macro policies tilt to easing to stabilize growth, the newspaper said citing analyst Wang Qing of Golden Credit Rating.