China's banking regulator has ordered Shanghai-incorporated banks to stop extending loans for fixed-asset investment for the rest of the month, two people familiar with the situation said Thursday
Loans for fixed-asset investment typically have a maturity of more than two years and are usually used to finance real-estate and machinery purchases, and the development of facilities.
Banks in Shanghai extended 36.1 billion yuan of new yuan loans last month, more than seven times the level in November last year of 4.8 billion yuan, data from the central bank's Shanghai headquarters showed.My bold.
Generally we think of debt addicts as the borrowers. But this a new twist on that.