Chinese banks' RMB loans soared by CNY1.3t in January

Here are the main growth drivers.

According to Maybank Kim Eng, Chinese banks' RMB loans surged by CNY1.3t MoM in Jan 2014 (+CNY483b MoM in Dec 2013). Banks boost loan growth in January of each year in order to maximize their net interest income.

Key growth drivers were long-term individual loans (+CNY312b) and corporate loans (+CNY504b) as well as short-term corporate loans (+CNY359b).

Here's more:

The RMB loan-to-deposit (L/D) ratio crawled up to 70.8% in Jan 2013 (68.9% in Dec 2013). Most H-share banks will focus on growing residential mortgages, SME loans, micro-finance and consumer finance in 2014. They also intend to maintain a stable L/D ratio.

Rise in shadow bank assets. Total aggregate financing surged to CNY2.58t in Jan 2014 (CNY1.23t in Dec 2013). Growth in bankers’ acceptance has accelerated, partly related to the recovery in external trade activities. H- share banks will shift from shadow bank assets to corporate bonds and interbank lending in 2014.