China's Banks Issue Record 3.64 Trillion Yuan Loans in March

Chinese banks issued a remarkable 3.64 trillion yuan ($500 billion) in new loans in March, significantly exceeding the expected 3 trillion yuan and recovering from a low of 1.01 trillion yuan in February. This boost in lending, including a substantial rise in household loans, reflects efforts to stimulate the economy amid escalating trade tensions with the U.S. Total new loans for the first quarter reached 9.78 trillion yuan, indicating a strong start to the year. Analysts suggest this unexpected rebound in lending could bolster confidence in the economy and potentially delay a cut in banks’ reserve requirement ratio. Policymakers are expected to continue fiscal and monetary adjustments to sustain economic momentum in light of ongoing trade frictions. The surge in mortgage lending is also seen as a positive sign for the recovery of China's real estate market, particularly in major urban areas.