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Th People's Bank of China says China's new yuan-denominated lending in the first half of the year fell to 4.63 trillion yuan. The figure is down more than 2.7 trillion from the same period last year.
Housing loans increased by more than 1.7 trillion yuan, while loans for non-financial and other sectors increased by nearly 3 trillion yuan.
Lian Ping, Chief Economist of BOCOM said "I think the whole situation is normal. On one hand, the new yuan loan surged too fast in the first half of last year, on the other hand, the central bank issued more central bank bills in the first six months. So although the figure is down from previous year, the actual loan amount didn't decrease by much."
Loans for the first half take up more than 60 percent of the annual target of 7.5 trillion yuan. Experts say it's basically balanced. The June figure was the second month in a row that new yuan loans decreased month-on-month.
Lian Ping said "I think the June figure is within market expectations. The change in the international environment, the tightening of China's real estate policy, together with EU's debt crisis played down loan demand in the latter half of the first six months."
Chinese banks issued a record 9.6 trillion yuan of new loans last year as part of a 4 trillion yuan stimulus package aimed at bolstering economic growth through the global financial crisis.