China Big Four Banks Reduced Lending in May
According to Market Watch, China’s big four state-owned banks offered CN208 billion in new loans in May (down from CN245 billion in April), which represents the smallest monthly growth this year. The big four banks normally account for a third of total loans.
In these conditions, Chinese banks likely extend fewer new yuan loans than consensus expected. According to Bloomberg, the median forecast for new loans by the entire banking sector is CNY850 billion up from April’s total new loans of CNY792.9 billion.