Chart: Composition of China’s net new loans13 July, 2012, 16:43. Posted by Zarathustra
We have already pointed out yesterday that although net new loans figure in the monetary statistics was better than expected, the composition of new loans is still tilted towards short-term loans and bills.
The chart below illustrates the point. It shows the composition of net new RMB loans to non-financial institutions. Demand for medium- to long-term loans continue to be sluggish, and that could be interpreted as the lack of interest from companies to invest.
Source: People’s Bank of China