The Tightening Has Begun In China

china yuan

Does this mark the beginning of the air being let out of the Chinese market?

Caijing: China’s big four state-owned commercial banks extended about 110 billion yuan in new loans in September, the lowest monthly figure this year, banking sources told Caijing on Oct. 12.

Analysts said the big four’s new lending for the month declined from 165.8 billion yuan in August primarily because the banks have finally heeded repeated calls from the regulator to refrain from accelerating lending at the end of the month, as well as a dramatic decline in new loans by Bank of China (SSE.601988; HKEX.0988). The Beijing-based bank, which had led the big four in terms of new loans since February, only disbursed about 3 billion yuan, down sharply from 72.2 billion yuan in August.

Read the whole thing >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.