China's Bank Loan Growth Continues to Decline in July

China's new bank loans in July fell to their lowest level since 2009, with weak credit growth and a decline in household and corporate loans. Despite interest rate cuts and promises of further support for the economy, weak demand at home and abroad has hindered China's economic momentum. Analysts expect more rate cuts and increased government bond issuance, but unless there is an improvement in business and household sentiment, credit growth is unlikely to improve significantly. The weak credit readings come after other grim economic data, including deflation and plummeting exports and imports, adding pressure on Beijing to implement more forceful stimulus measures.