Comments from People’s Bank of China training school professor Wang Yong

Writing a piece in the Securities Times

Bloomberg with the headlines

  • Says China January New Loans may exceed 2tln yuan
  • Warns of an 'abnormal' surge in China new loans in January

Nothing further at this stage

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Just for reference - December new Loans were 597.8bn

January data is due sometime between the 10th and 15th this month.

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More detail via Bloomberg:

  • New lendings were 1.7tln yuan in the 1st half of January
  • Might exceed 2tln yuan for whole January without control
  • Such a large amount of new loans is rare in history while real economy's lending demand is shrinking
  • Surge in new loans leads to tight interbank liquidity, which is also largely affected by falling yuan positions this year