Bank Lending Continues to Slow
China's "big four" state-owned banks extended just ¥6.6 billion in loans in the first week of June, disappointing market expectations that lending would rebound, according to people familiar with the matter. Deposits at the top four lenders were weak too during the week, shrinking ¥272 billion from the end of May. A recovery in lending will probably be seen in mid June as banks have been told to lend to projects approved by the National Development and Reform Commission to fuel the slowing economy, a person close to the banking regulator said.
Social Security Fund to Play Greater Role in PE
China's social security funds will ramp up investment in the private equity market, the National Council for Social Security Fund said. Investment in PE from social security funds is expected to total ¥30 billion by the end of this year, up from ¥19.5 billion a year earlier, and to hit ¥50 billion by the end of 2013, according to council director Dai Xianglong.
$1 = ¥6.33