According to data from the People’s Bank of China, new loans in June amounted to around 2.13 trillion yuan, lower than the market expectation of 2.25 trillion yuan.
On July 12, financial data released by the People’s Bank of China indicated that in the first half of the year, there was an increase of 13.27 trillion yuan in Renminbi loans, below the 15.73 trillion yuan recorded in the same period last year.
At the end of June, the outstanding Renminbi loans stood at 250.85 trillion yuan. Based on the Renminbi loan balance at the end of May as published in June, new Renminbi loans in June were around 2.13 trillion yuan, falling short of the market expectation of 2.25 trillion yuan.
Breaking it down by sector, household loans increased by 1.46 trillion yuan in the first half of the year. Corporate loans rose by 11 trillion yuan, while non-bank financial institution loans increased by 388.9 billion yuan.
The total social financing scale increased by 1.81 trillion yuan in the first half of the year, a decrease of 3.45 trillion yuan compared to the same period last year. In June alone, there was an increase of 3.3 trillion yuan, both figures falling short of expectations.
Specifically, loans to the real economy increased by 12.46 trillion yuan, a decrease of 3.15 trillion yuan compared to the previous year. Net financing of government bonds amounted to 3.34 trillion yuan, down by 39.3 billion yuan year-on-year, while net financing of corporate bonds was 1.41 trillion yuan, an increase of 237 billion yuan year-on-year.
Renminbi deposits increased by 1.146 trillion yuan in the first half of the year. Among them, household deposits rose by 0.927 trillion yuan, non-financial corporate deposits decreased by 1.45 trillion yuan, fiscal deposits dropped by 243.4 billion yuan, and non-bank financial institution deposits increased by 2.21 trillion yuan.
Furthermore, as of the end of June, the balance of foreign currency loans was $627.2 billion, a 12% decrease from the previous year. Foreign currency loans decreased by $29.2 billion in the first half of the year, while the balance of foreign currency deposits was $836.5 billion, marking a 0.1% decline year-on-year. Foreign currency deposits increased by $38.7 billion in the first half of the year.
According to a report from the Securities Times, in the current situation, blindly pursuing an increase in overall financial volume is challenging and may lead to side effects such as idle funds.
Citing authoritative experts, the Securities Times noted that the current situation poses challenges for policy regulation. While there is ample liquidity in the banking system, there is a weak demand for effective credit. The significant diversion of large deposits also disrupts financial data, and monetary policy relying solely on “flooding” the market will not resolve the issue. Additionally, with long-term interest rates already low, the central bank’s ability to further lower interest rates to reduce the comprehensive financing costs of the real economy is limited.