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China debt crunch

Anxious Chinese businesses, consumers cut borrowing after brief rebound

As private sector holds back, government accounts for over half of financing demand

Chinese companies appear to be taking a wait-and-see stance on spending decisions.   © Reuters

BEIJING -- Chinese business and consumer demand for cash has taken an unexpected fall, showing a reluctance to commit to investment and homebuying decisions.

Total social financing -- a broad measure of credit creation in China -- fell 30% on the year in July to 756.1 billion yuan ($112 billion), according to the People's Bank of China.

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