Chinese Banks Boost Short-Term Debt in Sign Lending to Pick Up
- Banks issued most NCD debt in November since 2017, data shows
- Credit growth has started to stabilize under PBOC guidance
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Chinese banks are rushing to raise short-term debt through negotiable certificates of deposit traded in the interbank market, foreshadowing a boost in lending as the economy slows.
Commercial lenders have issued a net total of almost 831 billion yuan ($130 billion) of NCDs in November, the highest since February 2017, data compiled by Bloomberg shows. This could indicate banks are preparing to accelerate loans to customers after the People’s Bank of China encouraged lenders to step up credit support to the economy and relaxed some restrictions on property financing.