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China’s Big Four Speed up Lending in Sept, Extend CNY275Bn New Loans

10-09 10:13 Caijing
The four largest state-owned banks together issued over CNY275billion (USD45 billion) new loans last month, the third highest monthly total this year.

China's four largest state-owned banks accelerate their pace of new lending in September, driven by a strong rally of deposit inflows in the last week of the month.

Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank together issued over CNY275billion (USD45 billion) new loans last month, the third highest monthly total this year,according to the 21st Century Business Herald.  The "Big Four" saw a new lending of CNY220billion in August.

The sharp rise in new loans was largely prompted by strong month-end deposit inflows which exceeded more than CNY850billion in the last week, underling the banks' efforts to speed up their efforts to fix the bleeding balance sheet in early September, the paper said.

Some of China's medium-sized banks have raised deposit rates since mid-September to fight for depositors amid increasing competition. 

New lending of Chinese banks is expected to beat earlier market expectations to exceed CNY800billion in September, as the top four Chinese lenders usually account for 30-40 percent of the total.

Chinese banks extended CNY704 billion of new loans in August, beating expectations of CNY600 billion, suggesting a boost in the new credit as the world's second largest economy is showing signs of steady recovery.

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