Quick links: Breaking Election Invest Bitcoin Syria North Korea Hot clicks Scandal Topless
www.paywallnews.com Only News Behind Paywalls
Financial Times / Biz - Money

China credit growth cools after January spike

New loans in China dipped last month as growth in total financing slowed, signalling a more measured increase in credit and tighter conditions for shadow financing after a record jump in new lending in January.

New renminbi loans totalled Rmb839.3bn ($132.2bn) in February, according to the People’s Bank of China - down from a record Rmb2.9tn in January, when loan officers’ annual lending quotas reset and local governments leaned on banks for loans as they awaited their own quotas for bond sales.

The February new loan figure represented a drop of 28 per cent from a year earlier compared to a year-on-year climb of 43 per cent in January.

Meanwhile new total social financing, a metric which covers a wider variety of credit including channels associated with shadow financing, was 7 per cent higher year on year in February to Rmb1.17tn after a dip 17 per cent in January to Rmb3.06tn.

Combined growth from shadow financing channels - trust loans, entrusted loans and bankers’ acceptances - came to just Rmb1.2 bn as outstanding entrusted loans dropped by Rmb75bn.