China sees improved credit structure in July

China's financial statistics for July released on Wednesday showed a continued optimization of credit structure, with stronger lending support for key sectors and weaker areas of the economy.

By the end of July, the balance of inclusive loans to small and micro businesses stood at 35.05 trillion yuan (about 4.82 trillion U.S. dollars), an increase of 11.8 percent year-on-year. Medium- and long-term loans to the manufacturing sector reached 14.79 trillion yuan, up 8.5 percent from a year earlier.

Both growth rates outpaced the overall loan growth during the same period.

Loans to sectors such as technology, green development, inclusive finance, elderly care, and the digital economy also grew faster than total loans, indicating the ongoing structural improvement.

"Since the beginning of this year, the guiding and leveraging effects of structural monetary policy tools have continued to strengthen. The capacity and willingness of financial institutions to support key sectors have continued to improve, with the effects becoming increasingly evident," said Dong Ximiao, chief researcher at Merchants Union Consumer Finance Company Limited (MUCFC).

In addition, loan interest rates remained near historic lows in July.

Newly issued corporate loans saw an average interest rate of about 3.2 percent, down roughly 45 basis points from a year earlier. Newly issued personal housing loans averaged around 3.1 percent, down about 30 basis points year-on-year.

"The low and declining interest rates reflect relatively ample credit supply, making it easier and more cost-effective for borrowers to secure bank financing. The reduction in financing costs also plays a positive role in boosting expectations and stimulating demand," Dong said.

China sees improved credit structure in July

China sees improved credit structure in July

The multilateral system is "under attack" amid global turmoil, President of the 80th UN General Assembly Annalena Baerbock warned in her remarks on Wednesday.

In her briefing on the priorities for the resumed 80th Session of the General Assembly, the UNGA president noted that the current multilateral system does not collapse all in a sudden, but "crumbles piece by piece" in divisions, compromises, and lack of political commitment.

The president called all the UN member states to defend the UN Charter and international law and promote cross-regional cooperation.

She also urged to push forward the work of the UNGA on certain critical issues with a strong majority, rather than an absolute consensus among all member states. Such act is not a failure of multilateralism, but "an affirmation of it," she said.

The foundational principles of the institution should not be eroded by appeasement, she said, calling the member states to show courage, leadership, and responsibility at the UN's "critical make-or-break moment."

"The UN needs you. Your support, your leadership, your principle, stand, your cross-regional cooperation, if we are to preserve and modernize this institution, if we are to make it, rather than break it," she said.

UNGA President warns global multilateral system "under attack"