People’s Daily recently reported on some key financial data newly released by China’s central bank. In the month of July, RMB loans totaled 385.2 billion yuan (around US$62.7 billion), which represents a year-over-year decline of 45 percent, or month-over-month decline of 64 percent. This was the lowest level of RMB loans since 2010. Experts cited the lack of demand as the key cause of the sharp decline in loans. In the meantime, the balance of the nonperforming loans in all commercial banks reached RMB 694.4 billion yuan (around US$113 billion), which accounted for an increase of RMB 102.4 billion yuan (around US$16.7 billion) since the beginning of the year. This number has been on the rise for the past eleven consecutive quarters. Most of the nonperforming loans were seen in the eastern coastal region. Such industries as wholesaling, retailing, manufacturing, and credit cards suffered most.
Source: People’s Daily, August 13, 2014