Chinese bank lending stumbled in November as COVID-19 outbreaks and lockdowns hampered economic activity
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- Lending from Chinese banks slipped below analyst expectations in November, according to Reuters.
- Banks lent out 1.27 trillion yuan against a projected 1.35 trillion.
- Covid-19 outbreaks and government lockdowns are frustrating China's efforts to ramp up growth.
New lending by Chinese banks fell below expectations in November, as China continues to contend with COVID-19 outbreaks and pushback from government lockdowns.
Banks in Beijing lent out 1.27 trillion yuan last month, according to data out Monday from the People's Bank of China. Analysts polled by Reuters projected 1.35 trillion yuan.
November's lending figures are still double that of a month earlier, but remain short of China's efforts to supercharge economic growth. 2022 has seen the country battle several COVID-19 outbreaks that have prompted stringent lockdowns in line with Beijing's Zero-Covid policy.
But outcry from frustrated Chinese citizens has forced the government to reconsider the strict lockdowns. Last week, the national government announced 10 changes to its Covid policies, ending three years of mass testing requirements and temporary blockades throughout provinces.
Meanwhile China's central bank is focused on supporting the economy, and slashed banks' reserve requirements by 25 basis points on December 5. The move freed up roughly 500 billion yuan in liquidity. China's economy has grown at a 3% clip so far this year, below an expected 5.5%.