China to release record new yuan loans data, boost CNY

January 10, 2024 08:22 PM AEDT | By Invezz

China to release record new yuan loans data, boost CNY — Image source: Invezz

Will New Yuan Loans live up to very high expectations?

In a recent Reuters poll, analysts forecast that China’s new loans would reach a 1.40 trillion yuan in December. This is a significant increase from November’s 1.09 trillion.

This amount would make 2023 the highest year on record for China in terms of new loans amounts.

What do New Yuan Loans signify?

While new loans are a signifier of debt, representing the outstanding balance lenders like banks have on their balance sheets for businesses and consumers, they’re mostly a good thing.

That’s because new yuan loans also show how much the Chinese are pumping back into the economy with spending, and rising totals for new loans, especially when they’re above forecast expectations, are considered a sign of future growth for the CNY.

Good news for overextended lenders

Bloomberg also reported this morning that companies Grand Automotive, Volke and Longfor, all of whom have sizable debts with Chinese banks, recently announced repayment plans for a significant amount of what they owed.

The post China to release record new yuan loans data, boost CNY appeared first on Invezz

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