Financial analysis surging bank loans and expansion of credits may hit the monthly records in China, which means that the official efforts to stimulate the economic growthare kicking in and it can be seen as the potential sign of slowing the growth and this will sluggish the financial sectors of China at least for the first half of the Year 2019.



The high level of debts, which was witnessed in the last year, which China had been cracking down and will change this year and the trade war with United States forced officials to reverse the course for last year.





The new loans in China have recorded highest in January and as per the world economic bulletin, the world's second largest economy expanding at 6.6% is noticeable as the slowest growth of China in the last 28 years.





The height at which China was going through for the last 3 years have drastically strike down The high debts in the Chinese Market is clamping down on the credit in particular non-traditional form known as “shadow banking” which had badly suppressed the economic growth and pull down the Chinese financial sectors.





Last year Chinese Authorities acquiesced into the discussion with United States to encourage banks to lend more, cut down the taxes and support the small and medium sized companies and entrepreneurship projects.





New Yuan loans hit 3.23 Trillion Yuan ($481.76 billion), while total social financing, which measures loans and other bones reached 4.64 trillion Yuan.





Jian Chang, chief economist for China at Barclays, said that credit has expanded "quite significantly" and we can expect the economic growth to pick up in the second quarter of the year once more policies can come into the picture and making things easy for Chinese Government.





However some financial analyst and philanthropist like Shibabrata disagree to this and recommends that a close reading of the recent credit number tells a more nuanced story and it's too early to call an end to the growth slow down.





Shibabrata continues as It should be seen in a different prospect where the high level of debts in the slowing economy is mainly where the creditors are borrowing more money and taking up new credits to pay off the existing loans and instead of funding the real economic growth.





Moreover with the dual export and property market downturn, Shibabrata Bhaumik says “ China will struggle to see how real demand for credit will increase meaningfully” Adding to this, Shibabrata prescribes to continue wisely, as Chinese authorities "would prefer not to be viewed as 'overcompensating' the boost and would prefer not to imperil the accomplishments as far as containing influence and decreasing budgetary dangers."





Eminent economist Louis Kuijs of Oxford Economic authors the report and analysed and documented by Shibabrata Bhaumik, CEO of PayQ.





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