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New loans expected to drop to 600b yuan in May

By Zhao Tingting (chinadaily.com.cn)
Updated: 2010-05-28 16:37
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The average monthly new loan volume is expected to be 600 billion yuan in May and June, to keep the total new loan amount at 2 trillion yuan for the second quarter, the Shanghai Securities News reported Friday.

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China's new loans stood at 774 billion yuan in April.

New policies aimed at cooling the property market issued by the State Council in April would certainly bring down the new loan amount in May, the report said.

Sources with a State-owned bank's branch in Northeast China told the paper that all commercial real estate development loan operations were halted there, while financing business for affordable housing projects is going on normally.

Lu Zhengwei, a senior economist with Fuzhou-based Industrial Bank, predicted that new loans in May will be 450 billion to 650 billion yuan.