Economics
China’s Bank Lending Rebounds; Good for Growth, Bad for Risk
- New yuan loans beat all forecasts; broader measure misses most
- ‘No sign at all of credit being reined in’ says Rabobank
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China’s banks turned on the lending spigot again last month -- a boost for the near-term economic outlook, but a longer-term drag as the nation’s debt pile keeps on swelling.
New yuan loans rebounded to 985.5 billion yuan ($150 billion) in May, the People’s Bank of China said, ahead of all 35 economists estimates and beating the median for 750 billion yuan in a Bloomberg survey. Aggregate financing was 659.9 billion yuan last month, missing all but one of 28 forecasts and below the median for 1 trillion yuan, as short-term bill financing slumped and net issuance of corporate bonds turned negative.