Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Bank of China Limited
  6. News
  7. Summary
    3988   CNE1000001Z5

BANK OF CHINA LIMITED

(3988)
  Report
Delayed Hong Kong Stock Exchange  -  04:08 2022-09-26 am EDT
2.650 HKD   -1.12%
07:41aAgricultural Bank Of China Issues $9.8 Billion Tier 2 Notes
MT
07:25aChina’s Yuan Hits 28-Month Low as Central Bank Moves to Stem Currency's Slide
MT
05:41aEuropean Midday Briefing: Stocks Struggle as -2-
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

China's August new bank loans rise more than expected, broad credit growth quickens

09/11/2020 | 06:22am EDT

Chinese banks extended more new loans in August than expected, while broad credit growth quickened, pointing to continued policy support as the economy recovers from a record coronavirus-induced slump.

Banks extended 1.28 trillion yuan ($187.25 billion) in new yuan loans, up 29% from July and slightly exceeding analysts' expectations, according to data released by the People's Bank of China (PBOC) on Friday.

Analysts polled by Reuters had predicted new loans would rise to 1.22 trillion yuan, up from 992.7 billion yuan in the previous month but largely in line with a year earlier.

Household loans, mostly mortgages, rose to 841.5 billion yuan from 757.8 billion yuan in July, while corporate loans jumped to 579.7 billion yuan from 264.5 billion yuan.

The PBOC has rolled out a raft of support measures since early February, including cuts in lending rates and banks' reserve requirements and targeted loan support for virus-hit companies.

But analysts say the central bank has now moved out of emergency mode to a more steady stance amid signs that the economy is quickly getting back on solid footing. Some analysts now believe there will be no more cuts to key interest rates this year.

"We anticipate a further acceleration in lending in the coming months," Capital Economics said in a note.

"A further ramp-up in government bond issuance is planned over the remainder of the year. What's more, stronger investment demand on the back of the ongoing economic recovery should prop up issuance of corporate bonds and equity."

PBOC Governor Yi Gang has said new loans are likely to hit a record of nearly 20 trillion yuan this year and total social financing could increase by more than 30 trillion yuan.

Authorities have urged banks to offer cheaper loans and cut fees to help struggling businesses hit by the COVID-19 pandemic, though such support is weighing on lenders' margins. The country's five largest banks last month reported their biggest profit falls in at least a decade amid mounting bad loans.

August data so far showed exports rose at their quickest pace in over a year, while factory gate prices fell at a slower pace thanks to stronger industrial demand. Consumer demand, which has lagged, also appears to be turning the corner with auto sales up for a fifth straight month.

Broad M2 money supply in August grew 10.4% from a year earlier, below estimates of 10.7% forecast in the Reuters poll, which was the same pace as July.

Outstanding yuan loans grew 13.0% from a year earlier, unchanged from July's pace and in line with expectations.

Most China watchers prefer to focus on the annual growth figures, which are a better guide to underlying trends in credit creation given that net issuance figures are highly seasonal.

BROAD CREDIT GROWTH QUICKENS

Annual growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, quickened to 13.3% in August from 12.9% in the preceding month.

TSF was expected to be buoyed by a sharp acceleration in local governments' bond issuance as they were asked to complete the issuance of special bonds by end-October.

Local government net debt issuance was at 920.8 billion yuan in August, finance ministry data showed, a sharp jump from 42.2 billion yuan in the previous month.

TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

In August, TSF more than doubled to 3.58 trillion yuan from 1.69 trillion yuan in July. Analysts polled by Reuters had expected 2.73 trillion yuan.

(Reporting by Lusha Zhang and Kevin Yao; Editing by Simon Cameron-Moore and Kim Coghill)

By Lusha Zhang and Kevin Yao


© Reuters 2020
All news about BANK OF CHINA LIMITED
07:41aAgricultural Bank Of China Issues $9.8 Billion Tier 2 Notes
MT
07:25aChina’s Yuan Hits 28-Month Low as Central Bank Moves to Stem Currency's Slide
MT
05:41aEuropean Midday Briefing: Stocks Struggle as -2-
DJ
05:09aChina's yuan ends at 28-month low despite fresh policy step, nears daily lower limit
RE
03:46aChina acts to rein in yuan slump, poised to raise FX risk reserve ratio
RE
01:52aSterling crumbles to record low, dollar soars on UK fiscal angst
RE
01:18aChina's yuan hits 28-month low despite fresh policy step, nears daily down-limit
RE
09/25Sterling crumbles to record low, dollar soars on UK fiscal angst
RE
09/25China acts to rein in yuan slump, poised to raise FX risk reserve ratio
RE
09/25China to raise FX risk reserve ratio to 20% rein in yuan weakness
RE
More news
Analyst Recommendations on BANK OF CHINA LIMITED
More recommendations
Financials
Sales 2022 631 B 88 459 M 88 459 M
Net income 2022 224 B 31 363 M 31 363 M
Net Debt 2022 - - -
P/E ratio 2022 3,33x
Yield 2022 9,62%
Capitalization 846 B 119 B 119 B
Capi. / Sales 2022 1,34x
Capi. / Sales 2023 1,26x
Nbr of Employees 304 521
Free-Float 35,3%
Chart BANK OF CHINA LIMITED
Duration : Period :
Bank of China Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BANK OF CHINA LIMITED
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 21
Last Close Price 2,41 CNY
Average target price 3,16 CNY
Spread / Average Target 31,3%
EPS Revisions
Managers and Directors
Jin Liu Vice Chairman & President
Lian Ge Liu Chairman
Ke Qiu Zhang Chairman-Supervisory Board
Qian Meng General Manager-Software Center
Guo Hua Jiang Independent Non-Executive Director
Sector and Competitors