The number of micro-credit companies in China saw a dramatic rise in the first three quarters this year, with their new loans rising only slightly year-on-year, a sign of both economic slowdown and poor management of the finance firms.
The number of micro-credit companies reached 5,629 by the end of September, up 48 percent year-on-year, the People's Bank of China said in a report on its website Wednesday.
The lenders issued a combined 141.4 billion yuan ($22.6 billion) in new loans in the first three quarters, up 2.5 percent year-on-year, according to the central bank.
"The new loans grew more slowly than in the first three quarters this year partly because of less demand from small and medium-sized enterprises (SMEs) hit by the economic slowdown," Han Jianli, deputy general manager at micro-credit firm Beijing Guoxu Small Loan Co, told the Global Times Wednesday.
"Some SMEs turned to the commercial banks, who have more money available for lending as the central bank has loosened liquidities," Han noted.
The central bank has cut the reserve requirement ratio twice this year for commercial banks and financial institutions, a move analysts estimated will release liquidities totaling 820 billion yuan.
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