China’s Big Four Banks Issue CNY 219.2 Bn New Loans in Aug

Source: People’s Bank of China, ChinaScope Financial (Data)

+       According to data released by the People’s Bank of China (PBOC) on September 18, in August, approximately CNY 219.2 billion in new loans was offered by China’s four major state-owned banks: Industrial and Commercial Bank of China (1398: HKG: 601398: SHA), Agricultural Bank of China (1288: HKG; 601288: SHA), Bank of China (3988: HKG; 601988: SHA), and China Construction Bank (0939: HKG; 601939: SHA). The figure was lower than CNY 237.2 billion in new loans offered in July.

+       In August, new short-term loans issued by China’s big four banks were CNY 39.89 billion, accounting for 18.91 percent of the total; new mid- and long-term loans were CNY 127.1 billion, 58 percent of the total.

+       By the end of August, total deposits in the four major banks were CNY 40.92 trillion, increasing slightly by CNY 57.47 billion month-on-month, a turnaround from a month-on-month decrease of CNY 909.4 billion in July.

The share of loans and deposits held by the big four banks continued to decrease in August. Although the government is encouraging long-term loans, it will take some time for a maturity composition change to materialize.

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