August 14, 2024 03:00 GMT
MNI China Press Digest Aug 14: New Loans, PBOC, Delivery Index
MNI (BEIJING)
BEIJING (MNI)
MNI picks keys stories from today's China press
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Highlights from Chinese press reports on Wednesday:
- 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 debt. 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.
- China’s central bank has increased its re-loan quota for supporting agricultural and small businesses by CNY100 billion across 12 provinces to support extreme weather prevention and reconstruction, Yicai reports. Authorities will offer a one-year re-loan rate at 1.75%, significantly lower than the one-year medium-term lending facility’s 2.3%, Yicai noted. Wang Qing, chief macro-analyst at Golden Credit Rating International, said the measure would add to positive growth of total credit in the third quarter.
- The China Express Delivery Development Index reached 393.9 in July, up 11.8% y/y, according to the State Post Bureau. Express deliveries hit 100 billion items 71 days faster than in 2023, underscoring consumer trends to increase online shopping especially during holidays and promotional seasons, said Fu Yifu, researcher at the Xingtu Financial Research Institute. Average monthly volumes have exceeded 13 billion items this year, with average monthly income over CNY100 billion, both historical highs, the bureau said. (Source: Securities Daily)
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