China's January Bank Loans Reach Record High Amid Economic Stimulus Efforts

In a move to bolster the sputtering economy, China's banks issued a record 4.92 trillion yuan in new loans in January, driven by policy support and stimulus measures.

• New bank loans in China surged to an all-time high of 4.92 trillion yuan in January, significantly exceeding analysts' expectations.
• The surge in lending is part of the central bank's strategy to support the weaker-than-expected post-COVID recovery and address a deep property crisis.
• A significant cut in the reserve requirement ratio for banks released 1 trillion yuan in long-term liquidity, marking the largest cut in two years.
• Household loans, mostly mortgages, and corporate loans saw sharp increases, indicating efforts to spur domestic demand.
• The People's Bank of China aims for 'reasonable growth' in bank credit, focusing on supporting the real economy and key sectors such as technology and green development.

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CNA CNA South China Morning Post