July New Loans Show Weak Demand

New loans rose CNY260 billion in July, according to a 21st Century Business Herald report. Wen Bin, chief economist at China Minsheng Bank, noted new loan issuance had been affected by insufficient demand, seasonal factors and a regulatory crackdown on inflated deposits and loans. Household loans decreased CNY210 billion in July with short-term borrowing down CNY216 billion and medium- and long-term loans up CNY10 billion. Though summer tourism had increased services consumption, residents’ uncertainty about employment and income growth continued to hinder household balance sheet expansion, said Wen. Longer-term residential loan growth was hindered by weak home sales and mortgage early repayments, he added.