China’s Bank Loans Lowest Since 2017 as Economy Slows
- Proxy for new household mortgage declined sharply again
- Analysts see possible RRR cut, LPR reduction in near term
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China’s credit growth in October was the lowest since 2019 and bank loans expanded by the smallest amount in almost five years, suggesting a further slowdown in the world’s second largest economy due to wider coronavirus curbs and a housing slump.
Aggregate financing, the broadest measure of credit in China’s economy, was 908 billion yuan last month according to the People’s Bank of China. That was the lowest amount for an October since 2019 and well below the 1.6 trillion yuan recorded in the same month last year.