BEIJING—Lending by Chinese financial institutions slumped in July on weakening demand, signaling further economic headwinds from trade tensions with the U.S. and potentially paving the way for more stimulus efforts by Beijing’s policy makers. Chinese banks issued 1.06 trillion yuan ($150.2 billion) of new yuan loans in July, down from 1.66 trillion yuan in June, the People’s Bank of China said on Monday—lower than the median forecast of 1.25 trillion yuan by economists polled by The Wall Street Journal. ...
Ongoing uncertainty due to the US-China trade war has prompted a slowdown in demand for credit, as Chinese banks lent CNY1.06tn ($150.2bn) in June, according to the country's central bank. The figure was down from July's CNY1.66tn, and lower than economists' estimates of CNY1.25tn. Analysts said Beijing's crackdown on shadow banking, as well as weakening property sales, also contributed to the decline, and suggested "further monetary easing" to protect growth.