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China's new credit forecast to ease to $73b in July

(Xinhua)
Updated: 2009-07-31 11:34

China' new loans in July were forecast to drop to less than 500 billion yuan ($73.21 billion), down from 1.53 trillion yuan lending last month, said Friday's Shanghai Securities News.

Related readings:  New loans may reach 6.5t yuan in first half   New yuan loans surge   BOC targets 500b yuan in new loans this year  Loan surge irks regulator

Government data showed that Chinese banks lent a record 7.37 trillion yuan in the first half of this year to shore up the economy, exceeding the full-year target of five trillion yuan.

Analysts held that despite the slowdown loans growth pace in July, investors' worries over liquidity shortages were unnecessary, as China's central bank reiterated Wednesday that the country would firmly stick to its moderately easy monetary policy to bolster the economy recovery.

The paper citied a latest report released by Beijing-based China International Capital Corp predicting that new loans in China would reach 10 trillion yuan for the full year.