June 26, 2009

New lending by Chinese banks is likely to hit 1.2 trillion yuan ($175.6 billion) in June, the China Securities Journal said on Friday, even as bank regulators warned about improper loans.New lending in the first five months totalled 5.84 trillion yuan, easily topping the government's full year minimum target of 5 trillion yuan.

Bank regulators earlier this week warned that credit was being channelled to the property sector and even the stock market, creating the risk of an asset bubble instead of supporting small businesses and the broader economy.Regulators sent out investigative teams to drive home their point.The June figure, while the highest in the second quarter, would still be below the January and March lending totals, the paper said, citing industry sources.