China New Yuan Loans Below Forecasts

2025-06-13 09:40 By Joana Taborda 1 min. read

Chinese banks extended CNY 620 billion in new yuan loans in May 2025, up from CNY 280 billion in April, which was the lowest level for that month since 2005, when trade tensions with the US escalated.

In May, however, a fragile 90-day trade truce was reached and the People’s Bank of China and the Chinese government introduced support measures to stabilize the economy and financial markets, including across-the-board interest rate cuts and liquidity injections.

Despite the monthly rebound, the May loan figure fell short of expectations of CNY 850 billion and CNY 950 billion last year.

Meanwhile, total social financing increased by CNY 2.29 trillion, more than double April’s CNY 1.16 trillion and roughly in line with forecasts.

However, other indicators pointed to continued softness in credit demand.

Outstanding loan growth slowed to 7.1% the lowest rate since at least 1998.

M2 money supply growth eased to 7.9%, down from 8% in April and missing the 8.1% forecast.



News Stream
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