First Word Asia: China's Credit Flood

Feb. 16, 2016


China’s new credit has surged to a record. Property prices recovered, companies paid off foreign currency loans and seasonal factors weighed in as well. Aggregate financing rose to 3.42 trillion yuan ($525 billlion) in January, according to a report from the People’s Bank of China. That compared with the median forecast of 2.2 trillion yuan in a Bloomberg survey. New yuan loans jumped to 2.51 trillion yuan, also a record and beating the median estimate of 1.9 trillion yuan.

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