China New Bank Loans

Chinese banks issued CNY 2.24 trillion in new yuan loans in June 2025, the highest in three months, up from CNY 620 billion in May and well above expectations of CNY 1.8 trillion. The figure also exceeded the CNY 2.13 trillion recorded in June 2024, supported by a seasonal surge in lending and a pickup in government bond issuance. June typically sees strong credit expansion as banks accelerate lending to meet quarterly targets. This year, the government’s front-loaded bond sales further boosted overall financing activity. Total social financing which is a broad gauge of credit and liquidity in the economy, rose by CNY 4.2 trillion, up from CNY 2.29 trillion in May and CNY 3.3 trillion a year earlier, and well above forecasts of CNY 3.65 trillion. Meanwhile, outstanding loan growth held steady at 7.1%, hovering at the lowest levels since 1998 but slightly exceeding expectations of 7%. M2 money supply growth also picked up, rising to 8.3% from 7.9% in May and ahead of forecasts of 8.1%.