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

(Xinhua)
Updated: 2009-07-31 15:35

BEIJING: China's new loans in July were forecast to drop to less than 500 billion yuan (73.2 billion US dollars), down from 1.53 trillion yuan lending last month, said Friday's Shanghai Securities News.

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.

Related readings:  China's new bank loans hit $223.96B in June  New loans may reach 6.5t yuan in first half  PBOC reaffirms moderately loose monetary policy  PBOC vows to prevent financial risks amid 'new challenges'  China's stock market tops Japan by value

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.