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Central Bank: Companies Not Willing to Borrow in Third Quarter

The well-known Chinese news site Sina recently reported that the Chinese Central Bank found that, in the third quarter of this year, the willingness for Chinese companies to take out loans reached the lowest point since the Bank started recording this number. The managers of most of the state-owned Chinese companies are worried about getting further into the debt. It is widely expected that the Chinese economy will not be able to achieve the goal of a 7.5 percent growth rate that the government set. At the same time, the government is also trying to control high risk loans. In addition, the banks are paying more attention to risk management. Trust companies are reducing their business activities in this downturn – they usually obtain funds from small investors and lend money to real estate developers with higher-than-usual interest rates. 
Source: Sina, October 9, 2014