Foreign Banks Lent More Than Chinese Ones Last Month in Shanghai
Liao Shumin
DATE:  Nov 15 2018
/ SOURCE:  Yicai
Foreign Banks Lent More Than Chinese Ones Last Month in Shanghai Foreign Banks Lent More Than Chinese Ones Last Month in Shanghai

(Yicai Global) Nov. 15 -- In a rare move, foreign banks in Shanghai replaced Chinese commercial lenders as the main provider of new loans in October, against a backdrop of much weaker than expected new credit nationally.

The balance of various loans in local and foreign currencies from Chinese-funded financial institutions in Shanghai dropped CNY7.4 billion (USD1.1 billion) compared with the month before, which is CNY52 billion (USD7.4 billion) more than the year-ago period. The equivalent balance for foreign financial institutions increased CNY28 billion on the month, a level which is CNY23 billion more than the year-ago month, according to data from the People's Bank of China's Shanghai office.

It an uncommon occurrence for foreign bank lending to outpace that of Chinese ones. As a reference, the balance of various loans in local and foreign currencies of Chinese-funded financial institutions in Shanghai increased CNY519.7 billion (USD74.2 billion) in the first nine months of the year, while those of foreign commercial lenders only grew CNY37.3 billion over the same period, earlier data from PBOC shows.

China's new yuan-denominated loans increased CNY697 billion in October nationwide, half of the growth posted the month before, and new loans in foreign currencies increased USD4.6 billion.

 

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Keywords:   Pboc