Chinese banks pip foreign rivals in first-half lending

While Chinese banks are seeing a credit boom due to the nation's huge stimulus package, their foreign peers have not been so lucky and might just be facing their most difficult period as far as business expansion in China is concerned.

According to the central bank's latest monetary policy report, in the first half of 2009, lending by foreign financial institutions in China dropped by 32.7 billion yuan. This is in stark contrast to the recording-setting 7.37 trillion yuan in new loans that Chinese banks gave out in the same period.

Analysts said foreign banks in China, restrained by their global development strategy and disadvantages in competing with Chinese banks for funding major government-led projects, could see a significant decline in business revenue this year.