Media reports: China to curtail lending throughout 2021

According to media reports, China’s central bank has asked lenders in the country to curtail lending throughout 2021 after a surge in loan growth in the first two months raises the alarm of a bubble. 

Official data showed that in the first two months of 2021, Chines banks have advanced 4.9 trillion yuan of the new loans, 16% higher than the same period last year. 

The credit curbs are expected to drain liquidity from the futures and the stock markets. However, the PBOC continues to encourage lenders to focus lending on areas such as innovative technology and the manufacturing sector.