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China's demand for loans increases in Q2: central bank

Xinhua | Updated: 2020-07-05 17:03
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A bank staff counts Chinese currency Renminbi banknotes at a bank in Linyi, East China's Shandong province. [Photo/Xinhua]

BEIJING - China saw stronger overall demand for loans in the second quarter of this year as economic activities remain on the track to recovery, a central bank survey showed.

The index for overall loan demand surged to 75.8 in Q2 from 66 in the last quarter, according to a survey of bankers by the People's Bank of China.

A breakdown of the data showed the manufacturing and infrastructure sectors both recorded a higher demand for credit support in Q2 than in the previous quarter.

The loan demand index for manufacturing in Q2 was 70.6, up from 65.6 in Q1, while that for the infrastructure sector expanded to 69.7 from 62.3.

Among companies of all sizes, small and medium-sized enterprises registered the fastest expansion of demand for loans, the report said.

Another central bank report showed that businesses posted improving profitability in Q2, with the index surging to 49.6 from 22.3 in Q1.

The survey results indicated that China's economy is picking up momentum as the government steps up efforts to counter the impacts of the COVID-19 epidemic.

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