China's Loan Drop: Warning Signs for Global Economy

New data from Chinas central bank reveals a substantial drop in new loans issued by banks, with only thirty-nine billion US dollars in new loans made last month, far below expectations. This slowdown, despite government efforts to boost investment, is part of a broader economic struggle in China, marked by slow consumer spending and a property crisis. Analysts warn that the situation may be skewing monetary figures, with households and businesses holding onto cash, and new credit and savings deposits stalling. This trend of more liquid funds compared to broader money supply often correlates with money leaving China, suggesting that domestic funds are seeking riskier investments abroad.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.