New bank loans in China contracted last month for the first time in 20 years, new data released on Aug. 13 show.
In July, new yuan loans declined by 50 billion yuan ($6.97 billion), following the 2.24 trillion yuan ($312.2 billion) increase in June. This represented the first monthly decline since July 2005.
The market had penciled in growth of 300 billion yuan ($41.8 billion).
While July typically reports slower growth as financial institutions curtail their earlier efforts to meet quarterly lending targets, experts say the worse-than-expected figures could suggest deteriorating credit demand.
In previous years, according to historical data, banks issued 679 billion yuan (2022), 345.9 billion (2023), and 260 billion yuan (2024) in new loans….
China’s New Bank Loans Drop for First Time Since 2005
