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China loan demand to slow in H2 :Chinese Bank

China loan demand to slow in H2 :Chinese Bank
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First Published: Tue, Jul 28 2009. 04 34 PM IST
Updated: Tue, Jul 28 2009. 04 34 PM IST
Beijing: China Construction Bank (CCB), the country’s second-largest bank by market value, thinks that there will be weaker demand nationwide for loans in the second half of this year, a source at the bank said on Tuesday.
Chinese banks issued a record 7.4 trillion yuan ($1.1 billion) in new loans in the first six months of the year, a lending pace which few think is sustainable.
“Demand in the second half is weaker than the first half,” the source said. “Even if new loans fall sharply from the first half, customers’ needs can be addressed.”
New loans granted by all Chinese commercial banks are not expected to exceed 500 billion yuan in July, the source said.
The CCB has lent 70 billion yuan ($10.25 billion) so far this month, half of that was bank note financing and the rest personal loans, said the source, who has direct knowledge of the figures.
The source declined to be named as he was not authorised to speak to media.
The CCB, the country’s second-biggest bank by market value, has granted 708.5 billion yuan in the first six months of the year, an increase of 19.8% from a year earlier, according to a statement on its website.
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First Published: Tue, Jul 28 2009. 04 34 PM IST