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PBOC says banks should extend additional loans

The central bank has told lenders to increase lending by year-end, and has relaxed limits on their loan-to-deposit ratios to help hit a record new lending target as the government steps up efforts to lift flagging economic growth. Two sources with knowledge of the matter said that the People's Bank of China will allow banks to lend an unprecedented 10 trillion yuan ($1.62 trillion) for all of 2014, up from what Chinese media have said was a previous target of 9.5 trillion yuan. Bank lending is a crucial part of China's monetary policy because the government tells commercial banks how much to lend and when to lend each year. The PBOC is also allowing banks to lend more than 75 percent of their deposits, injecting flexibility into a rule that was meant to control lending activity.

P2P lending may exceed 100b yuan for full year