Chinese banks extended CNY 280 billion in new yuan loans in April of 2025, sharply down from CNY 730 billion in the same month a year earlier and significantly below market expectations of CNY 700 billion.
China new yuan loans slump to 20-year low
The figure marked the lowest new credit extension for the month of April since 2005, underscoring persistent weakness in credit demand amid fragile economic conditions, sluggish consumer confidence, and cautious corporate borrowing.
In turn, total social financing (TSF), a broad measure that captures the total volume of credit provided by the financial sector to the real economy, expanded by CNY 1.16 trillion in April. This reflected the central government's intensified push to boost fiscal stimulus through accelerated bond issuance, particularly with the introduction of ultra-long-term special debt planned for later in the month. The government's efforts aim to shore up infrastructure investment and stabilize overall financing flows, compensating for the weaker bank lending figures.
Outstanding loan growth remains steady
Additionally, outstanding loan growth remained steady at 7.2% year-on-year for a second consecutive month, suggesting ongoing pressures on credit expansion despite supportive policies. Meanwhile, the broad M2 measure of money supply rose by 8% year-on-year, marking the fastest pace of growth in over a year as authorities stepped up liquidity support to the banking system in an effort to maintain financial stability and encourage lending activity.
