China's new loans fell sharply in April
Chinese banks significantly cut their new loans in April after lending record amounts in the first quarter in response to government calls to support the economy, the central bank said Monday.
Banks extended 591.8 billion yuan (86.7 billion dollars) last month, the People's Bank of China said in a statement, less than a third of March's monthly record of 1.890 trillion yuan.
However, the loan growth was still "more than enough to support economic recovery," HSBC economist Qu Hongbin told Dow Jones Newswires.
He called it "a slowdown, but it's a welcome slowdown," given the gigantic amounts extended in the first quarter, adding new loans would likely stay in the 300 billion to 500 billion yuan range until year end.
New loans stood 1.070 trillion yuan in February and 1.620 trillion in January, according to bank figures.
Chinese banks lent a total of 4.580 trillion yuan in the first quarter, close to the target of five trillion yuan set by Beijing as the minimum for the whole year.
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