Chinese Banks Told to Show Restraint Following Record Loan Growth in January


The Chinese government has told the country’s banks to keep new renminbi lending steady in the lead up to the Lunar New Year, according to sources speaking to Caixin. 

The report comes just after new renminbi lending in China hit a record high of 2.9 trillion yuan (USD$458.5 billion) in January, for a five-fold increase compared to the preceding month.

The previous record for one-month lending was 2.51 trillion yuan, posted in January 2016.

According to analysts China’s banks usually engage in heavier lending at the start of each year, in order to shore up their market share and obtain better clients.