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China's banks may fall short of their 2012 loan targets, say several officials, thanks to a...

China's banks may fall short of their 2012 loan targets, say several officials, thanks to a drying-up in demand from their biggest customers - large state-owned firms. Bank loans dove 33% April and the May figures may be worse, with only ¥34B ($5.4B) advanced through May 20 (¥682B was loaned in April). The news seems to have hit stocks and the aussie dollar, off 40 pips in a few minutes.
Comments (4)
  • lazzybum
    , contributor
    Comments (84) | Send Message
     
    The majority of Chinese banks' customers used their loan to play real estate market. Now that the government is cooling the market, they don't need the loans any more. This is good for private sectors. For the banks to continue to do business, they'll need to learn how to survive in the private market.
    24 May 2012, 04:36 PM Reply Like
  • Van Hyder
    , contributor
    Comments (168) | Send Message
     
    I just read today in the economist that the rate of new deposits to Chinese banks is slowing rapidly as well, good thing they're slowing their loan book in conjunction. It's hard work finding good things to invest in, the low hanging fruit has been gotten.
    24 May 2012, 09:12 PM Reply Like
  • mr clark
    , contributor
    Comments (635) | Send Message
     
    China heading to a more reasonable 3% growth rate real quick

     

    watch commodities, they already know this...
    24 May 2012, 09:49 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9966) | Send Message
     
    China and EU weakness will continue to flow through to US equities and lower prices yet still on the way.
    25 May 2012, 02:48 AM Reply Like
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