Economics
China Hits ‘Liquidity Trap’ as Low Rates Fail to Spur Bank Loans
- Credit slows sharply in July amid property slump, weak growth
- Risks of excess liquidity rising as M2 growth picks up: Ming
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China’s low interest rates are failing to spur lending in the economy, creating a challenge for policy makers as they try to bolster the nation’s fragile recovery.
Central bank data on Friday showed a sharp slowdown in aggregate financing, a broad measure of credit, in July, as new loans and corporate bond issuance weakened.