Economy Aug 05

PBoC data show lending has risen in almost all sectors

Defence industries and chipmakers enjoying a boom, but cash tighter in real estate

PBoC data show lending has risen in almost all sectors
The People's Bank of China. File photo by AFP.

(ATF) The People's Bank of China has released its financial institution loan and investment report for Q2 via a video link from Beijing and on its website. Loans to the defence industry and chipmakers are booming. Real estate appears to be seeing a slight dip, but loans are increasing across the board.

According to PBoC’s statistics, at the end of the second quarter of 2020, the balance of yuan loans from financial institutions was 165.2 trillion yuan, an increase of 13.2% year-on-year. The first half of the year saw an increase of 12.09 trillion yuan, a rise of 2.42 trillion yuan year-on-year.

The central bank noted that the growth of medium- and long-term industrial loans had increased significantly, but not to real estate. The growth of medium- and long-term loans to the service industry has accelerated, while loans in the inclusive finance sector maintained rapid growth and green loans have also seen accelerated growth.

At the end of the second quarter, the balance of loans to enterprises and institutions in domestic and foreign currencies was 107.53 trillion yuan, a year-on-year increase of 12.8%, and the growth rate was 0.8 percentage points higher than the end of Q1. These loans saw an increase of 9.16 trillion yuan in the first half, which was a rise of 2.88 trillion yuan year-on-year.

In terms of maturity, the balance of short-term loans and bill financing was 42.51 trillion yuan, an increase of 12.4% year-on-year, and the growth rate was the same as at the end of the previous quarter. The first half saw short-term loans increase by 4.08 trillion yuan, which was a rise of 1.4 trillion yuan year-on-year. The balance of medium and long-term loans was 62.22 trillion yuan, an increase of 13.4% year-on-year, and the growth rate was 1.6 percentage points higher than at the end of the previous quarter; the first half saw an increased of 4.94 trillion yuan, which was a rise of 1.47 trillion yuan year-on-year.

In terms of usage, the fixed asset loan balance was 45.85 trillion yuan, an increase of 12.1% year-on-year, and the growth rate was 0.8 percentage points higher than the end of Q1; the operating loan balance was 44.18 trillion yuan, an increase of 11.0% year-on-year, while the growth rate was 1.3 percentage points higher than the end of the previous quarter.

Second, the industrial growth rate significantly improved with long-term loans, causing the service industry to enjoy accelerated growth, but this did not apply to the real estate sector.

At the end of the second quarter, the balance of medium and long-term loans in domestic and foreign currency industries was 10.01 trillion yuan, a year-on-year rise of 12.8%, which saw a growth rate 4.5 percentage points higher than the end of Q1. There was an increase of 836.5 billion yuan in the first half of the year, and a rise of 554 billion yuan year-on-year. Among these, the balance of medium and long-term loans for heavy industry was 8.72 trillion yuan, a year-on-year increase of 11.4%, and the growth rate was 4.3 percentage points higher than the end of the previous quarter. The balance of medium and long-term loans for light industry was 1.29 trillion yuan, a year-on-year rise of 23.2%, and the growth rate was 5.9 percentage points higher than at the end of Q1.

At the end of the second quarter, the balance of medium and long-term loans to the service industry in domestic and foreign currencies was 42.70 trillion yuan, a rise of 13.8% year-on-year, and the growth rate was 0.9 percentage points higher than the end of Q1. There was an increase of 3.28 trillion yuan in the first half, which was a rise of 719.9 billion yuan year-on-year. Excluding the real estate services industry, long-term loans rose by 15.6%, with a growth rate 1.6 percentage points up from the previous quarter.

The balance of medium and long-term loans in the real estate industry increased by 9.7% year-on-year, which was 0.8 percentage points lower than the end of the previous quarter.

Loans in the inclusive finance sector maintained rapid growth.

At the end of the second quarter, the balance of loans in the yuan inclusive financial sector was 19.72 trillion yuan, an increase of 20.7% year-on-year, with a growth rate 3 percentage points higher than the end of Q1. There was an increase of 2.43 trillion yuan in the first half of the year, which was a rise of 937.2 billion yuan year-on-year.

At the end of the second quarter, the balance of inclusive small and micro loans was 13.55 trillion yuan, a year-on-year increase of 26.5%, while the growth rate was 2.9 percentage points higher than the end of Q1. There was an increase of 1.97 trillion yuan in the first half, which was a rise of 753.9 billion yuan year-on-year. 

The balance of loans for production and operation of rural households was 5.80 trillion yuan, a year-on-year increase of 9.6%, with a growth rate 2.7 percentage points higher than that at the end of Q1. The balance of business secured loans was 172.6 billion yuan, a year-on-year rise of 34.8%; the balance of student loans was 111.3 billion yuan, a year-on-year rise of 12.2%.

At the end of the second quarter, the balance of loans for people in poverty was 182.9 billion yuan. 

Green loan growth has also accelerated.

At the end of the second quarter, the balance of domestic and foreign currency green loans was 11.01 trillion yuan, an increase of 10.8% over the beginning of the year, when the unit green loan balance was 10.97 trillion yuan and accounted for 10.2% of loans to enterprises and institutions in the same period.

In terms of usage, the balance of loans for the green upgrading of infrastructure and clean energy industries was 5.28 trillion and 2.99 trillion yuan, an increase of 11.1% and 5.9% respectively over the beginning of the year. Analysed by industry, traffic transportation, storage and postal industry saw a green loan balance of 3.42 trillion yuan, an increase of 6.8% over the beginning of the year. For electricity, heat, gas and water production, the supply of green loans was 3.23 trillion yuan, up 7.1% over the year.

The growth rate of loans for agriculture, rural areas and farmers continued to rebound.

At the end of the second quarter, the balance of domestic and foreign currency agricultural loans was 37.83 trillion yuan, an increase of 10.5% year-on-year, and the growth rate was 1.5 percentage points higher than the end of Q1; the first half of the year saw an increase by 2.82 trillion yuan, which was a rise of 1.08 trillion yuan year-on-year.

At the end of the second quarter, the balance of loans in rural areas (county and below) was 31.17 trillion yuan, an increase of 11.3% year-on-year, with a growth rate 1.5 percentage points higher than the end of Q1. There was an increase of 2.46 trillion yuan in the first half, with a rise of 945.6 billion yuan year-on-year. 

The balance of rural household loans was 11.18 trillion yuan, a year-on-year increase of 13.3%, 1.4 percentage points higher than the end of Q1. There was an increase of 872.6 billion yuan in the first half, which was a rise of 164.6 billion yuan year-on-year. The balance of agricultural loans was 4.28 trillion yuan, an increase of 6.2% year-on-year, with a growth rate 2.9 percentage points higher than that at the end of Q1. There was an increase of 340.3 billion yuan in the first half, which was a rise of 209.3 billion yuan year-on-year.

Meanwhile, the growth rate of real estate loans continued to fall.

At the end of the second quarter, the balance of RMB real estate loans was 47.4 trillion yuan, a year-on-year increase of 13.1%, which was 0.1 of a percentage point lower than the growth rate of various loans and 0.8 of a percentage point lower than the end of Q1. The balance has fallen for 23 consecutive months; but saw an increase of 2.99 trillion yuan in the first half, which was a rise of 24.7% in various loans over the same period, but 9.3 percentage points lower than the annual level of the previous year.

At the end of the second quarter, the balance of real estate development loans was 11.97 trillion yuan, an increase of 8.5% year-on-year, but the growth rate was 1.1 percentage points lower than at the end of Q1. Among them, the balance of affordable housing development loans was 4.72 trillion yuan, a year-on-year increase of 2.5%, but the growth rate was 1.4 percentage points lower than the end of Q1. The balance of personal housing loans was 32.36 trillion yuan, a year-on-year increase of 15.7%, but the growth rate was 0.2 of a percentage point lower than the end of Q1.

Accelerated growth of household loans

At the end of the second quarter, the balance of domestic and foreign currency household loans was 58.88 trillion yuan, an increase of 14% year-on-year, with a growth rate 0.3 percentage points higher than at the end of Q1. There was an increase of 3.55 trillion yuan in the first half, which was a year-on-year decrease of 204.1 billion yuan.

At the end of the second quarter, the balance of domestic and foreign currency household operating loans was 12.56 trillion yuan, an increase of 15.9% year-on-year, with a growth rate 2.9 percentage points higher than the end of Q1. The first half saw an increased of 1.21 trillion yuan, which was a rise of 456.2 billion yuan year-on-year. 

Meanwhile, the balance of household consumption loans was 46.32 trillion yuan, a year-on-year increase of 13.5%, which was 0.4 of a percentage point lower than the end of Q1. There was an increase of 2.34 trillion yuan in the first half, but a year-on-year decrease of 660.2 billion yuan.