China New Bank Loans Fall to Lowest Level Since 2018 Amid Weak Demand
China's new bank loans reached 16.27 trillion yuan in 2025, the lowest total since 2018. Weak credit demand persists despite recent monetary policy easing.
洞察:
China 
CNrecorded 16.27 trillion yuan in new bank loans throughout 2025, marking the lowest annual total since 2018. This figure, reported by the People's Bank of Chinaon January 15, 2026, represents a significant decline from the 18.09 trillion yuan in new loans issued during 2024. The data reflects a persistent lack of borrowing appetite among the household sector and corporate sector as Chinagrapples with a prolonged property market downturn and tepid consumption. The Chinese banking system faces these challenges despite the country recording a trade surplus of nearly 1.2 trillion dollars in 2025.
CNrecorded 16.27 trillion yuan in new bank loans throughout 2025, marking the lowest annual total since 2018. This figure, reported by the People's Bank of Chinaon January 15, 2026, represents a significant decline from the 18.09 trillion yuan in new loans issued during 2024. The data reflects a persistent lack of borrowing appetite among the household sector and corporate sector as Chinagrapples with a prolonged property market downturn and tepid consumption. The Chinese banking system faces these challenges despite the country recording a trade surplus of nearly 1.2 trillion dollars in 2025.In December 2025, new bank loans reached 910 billion yuan, showing an improvement from the 390 billion yuan recorded in November 2025. Although this monthly figure exceeded the 800 billion yuan expected by 19 analysts polled by Reuters, it remained lower than the 990 billion yuan recorded in December 2024. The month-end increase suggests that government stimulus measures and government bond issuance programs, which were ramped up to stabilize leverage and the economy, began to gradually improve credit demand toward the end of the year.
