New yuan loans soar in July on construction projects

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Chinese yuan. Photo: iStock

New yuan loans have increased by 1.45 trillion yuan (US$210 billion) in July, a rise of 623.7 billion yuan from a year earlier, The Paper reported.

Currently, banks and insurances companies are encouraged to increase credit supply and provide the real economy with more financing supports, especially in the infrastructure sector.

Regarding the latter, banks are expected to guarantee the financing needs of projects under construction.

Thus, new yuan loans in the infrastructure industry in July reached 172.4 billion, an increase of 46.9 billion yuan over June.

The performance of off-balance sheet financing, such as trust loans and entrusted loans,  remains relatively flat.

Also, an increasing number of non-performing loans have been written off to free up more credit space.

In the first half of the year, banks have dealt with 800 billion yuan in non-performing loans, which was 166.5 billion yuan more than the same period of the previous year.

Source

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