BEIJING, March 13 (Reuters) – New bank lending in China slumped far more than expected in February, retreating sharply from a seasonally strong start to the year as weak credit appetite continued to drag on borrowing in the world’s second‑largest economy.
China’s banks extended 900 billion yuan ($130 billion) in new yuan loans in February, plunging from 4.71 trillion yuan in January and missing analysts’ forecasts, according to Reuters calculations based on data released by the People’s Bank of China (PBOC).
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Analysts polled by Reuters had expected new yuan loans would stand at 979 billion yuan last month.
Credit typically slides in February as banks front-load lending at the start of the year and China’s longest nine-day Lunar New Year holiday last month also reduced business activity and loan demand.
February’s lending was also below the 1.01 trillion yuan recorded a year earlier, underscoring persistently weak borrowing appetite amid a prolonged property slump and cautious corporate sentiment.
The PBOC does not provide monthly breakdowns. Reuters calculated the February figure based on the bank’s January-February data released on Friday, compared with the January figure.
Outstanding yuan loans grew 6.0% in February from a year earlier – a record low and slower than 6.1% in January. Analysts had expected 6.0% growth.
The record‑low loan growth was driven largely by the continued slump in household borrowing, Capital Economics said in a note.
Chinese new loans slump more than expected as weak demand persists
