UBS: No Credit Tightening Yet in China

by swisscham in Bank, Finance, Insurance

China’s whole year new RMB lending is likely to reach RMB 9 trillion (USD 1.5 trillion), while total social financing (TSF) may exceed RMB 17 trillion, UBS said in a note on December 11. “No credit tightening yet,” wrote Wang Tao, chief China economist at UBS. China’s new RMB lending and total social financing in November both beat market expectations. New TSF stood at 1.23 trillion, 370 billion more than in October. UBS expected outstanding TSF to grow 18.5% in 2013. “November’s strong credit number suggests that the higher interest rates and bond yields of recent months have yet to constrain credit demand much, as feared by the market,” UBS said. “A large segment of the market is still not very sensitive to higher rates”. The bank said the Chinese government would likely follow a relatively prudent monetary and credit policy stance, and expect TSF growth to slow to about 16% in 2014. “Given the ongoing interest rate liberalization and financial deregulation processes, credit growth could again exceed the government’s desired pace in 2014,” UBS said.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Your Swiss Business Platform in China

SwissCham China has roughly 600 company members. Our Chamber maintains a strong relationship with the Embassy of Switzerland, Switzerland Global Enterprise, Swissnex and Switzerland Tourism. As the representative of the Swiss companies established in China, our goal is to help you to increase your business and visibility, especially amongst the Sino-Swiss business community.

Become A Member

Sign Up For Our Newsletter

  • This field is for validation purposes and should be left unchanged.
September 2, 2022
Published By in Engineering / Manufacturing
September 2, 2022
Published By in Bank / Finance / Insurance
August 26, 2022
Published By in Engineering / Manufacturing
August 3, 2022
Published By in Business