China’s Loan Market Stirs at End of First Down Year Since 2011
- New loans extended in full year had first decline since 2011
- Ramp-up in government bond sales lifts overall credit issuance
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An outpouring of Chinese government bond issuance and early signs of improvement in the housing market helped stir up appetite for financing in December, drawing to a close a year when new loans declined for the first time since 2011.
The worst of the plunge in demand for credit is likely over as Beijing’s stimulus blitz kicks in. Aggregate financing climbed 2.86 trillion yuan ($390 billion) last month while 998 billion yuan in new loans was extended, the highest totals for both measures in three months.