Home›Forex›EM Currencies›China credit demand seen soft in July as lending growt…

China credit demand seen soft in July as lending growth cools

DBS Group Research expects new Yuan loans of about RMB 10.8 billion in July and M2 growth near 8% year on year.

Reported · Written up by our desk · EM Currencies

FXStreet, citing DBS Group Research, expects China’s credit demand to remain weak in July, with new Yuan loans around RMB 10.8 billion and M2 growth of about 8% year on year.

The outlook points to softer medium-to-long-term lending by both corporates and households, amid cautious borrowing and mortgage prepayments.

DBS also links the sluggish credit picture to higher precautionary savings and subdued property prices, factors it says are likely to restrain investment and consumption.

More like this

Sources