Banks extend 70b in yuan-denominated loans

China's big four banks extended 70 billion yuan ($11 billion) worth of yuan-denominated loans in the first half of August, up from 50 billion yuan in the same period of July, the Shanghai Securities Daily reported on Monday.

The big four banks are: Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China.

However, the new loan issuance does not represent the wide situation of the sector, industry experts said.

Dragged by the slowing economy, Chinese companies' credit demand has been weak throughout the year.

In July, banks in China extended 540.1 billion yuan of local-currency new loans, the lowest figure since October, and much lower than the 700 billion yuan estimated inside the industry.

New loan issuance in August is expected to reach 600 billion yuan, the Shanghai Securities Daily reported.