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New Loans Rebound In June With Better Credit Structure

CHINA PRESS
MNI (Singapore)

Yuan-denominated loan issuance has rebounded by CNY3.05 trillion in June, a record high for period, as corporate and household credit increased significantly. Meanwhile, bill financing decreased, indicating optimised credit structure, said Wen Bin, chief economist at China Minsheng Bank. Loans to enterprises increased by CNY2.28 trillion in June, as rate cuta stimulated investment and production demand, and banks rush to boost credit at quarter-end. Loans to individuals rose by CNY963.9 billion, second only to March, thanks to the Dragon Boat Festival holiday and mid-year shopping festivals, which drove consumer loans. Prudent monetary policy should promote loose credit to achieve the effect of demand expansion, key to economic recovery, said Wang Yunjin, senior researcher at Zhixin Investment Research Institute. (Source: 21st Century Business Herald)

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