Chinese banks shift lending to real economy amid recovery

BEIJING, Sept. 8 (Xinhua) – China’s six big banks stepped up their support for lending to real economy sectors in the first half (H1), as demand continued to rise amid a solid recovery.

The latest semi-annual reports from the six largest state-owned commercial banks show that each of the four largest lenders issued more than one trillion yuan (about $ 154.97 billion) in new loans in the first half, pumping liquidity into key sectors of the real economy. such as small and micro enterprises, agricultural and emerging industries.

Business demand for credit loans has further escalated as epidemic control efforts have taken hold and economic fundamentals maintained their upward momentum, said Wang Jiang, director of China Construction. Bank (CCB).

With the structure of the credit-loan supply being optimized and financing services becoming more targeted and precise, banks have played a positive role in forging the recovery of the real economy, industry professionals noted.

The Industrial and Commercial Bank of China (ICBC) has taken the lead in piloting loans to small and micro enterprises, followed by the Agricultural Bank of China (ABC) and the Bank of China (BOC).

The growth rate of inclusive loans issued by ICBC stood at 40.4% in the first half of the year, while that of ABC and BOC also exceeded 30%.

Green loans have risen sharply as part of China’s carbon targets. At the end of June, the ICBC, ABC, BOC and CCB all reported a green loan balance of over one trillion yuan.

Lenders have also increased their financial support to strategic emerging industries, led by the BOC. The bank saw its issuance of loans to sectors skyrocket 83.5% from the end of last year.

Zhang Qingsong, director of ABC, said the bank had stepped up support for rural revitalization credit lending. At the end of June, the bank said the balance of loans granted to regions at the county level stood at 5.9 trillion yuan.

Based on the premise that “homes are made for living, not for speculation” and the country’s regulatory control over preventing and defusing financial risks, lending to the Chinese real estate sector has grown more slowly in the past. during the first six months.

Official data shows that outstanding home loans increased 9.5 percent from last year to 50.78 trillion yuan at the end of June. According to the banks, the new loan quotas issued were primarily intended to meet the demands of residents to buy their own homes to live in.

In the next half-year, loan issuance will maintain a steady growth momentum, while the structure of credit lending will be further optimized, the banks said.

While demand for credit for rural revitalization, green economy and advanced manufacturing are strong, the Bank of Communications will increase project reserves for these sectors, said Liu Jun, director of the bank.

Personal loans will also be highlighted by banks over the period. The Postal Savings Bank of China said it will provide more loans to retail businesses, with an emphasis on agricultural projects and small and micro-sized loans.

The ABC will financially support regions at the county level, private companies and manufacturing sectors that lack cash flow, Zhang said.

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