China's new yuan loans may rise in near term, economist

China's new yuan-denominated lending is expected to increase in the next several months, according to Li Daokui, an economist at Tsinghua University.

Banks in China extended RMB 809.6 billion yuan new loans denominated in Chinese currency yuan, also known as renminbi (RMB), in August, data released by the country's central bank showed last Friday, down from RMB1.48 trillion in July.

The economist said the central bank would roll out more measures to reduce financing costs, which would boost liquidity and support new loans.

Meanwhile, some major construction projects announced in the first half of the year would trigger accelerated investment and lead to an increase in new lending.