China's bank lending declined more than expected in July, figures from the People's Bank of China showed Friday.
Banks provided CNY 463.6 billion new yuan loans in July, less than economists' forecast of CNY 800 billion and below June's 1.38 trillion lending.
Total social financing dropped to CNY 487.9 billion from CNY 1.63 trillion in June.
M2 broad money supply climbed 10.2 percent year-on-year in July, slower than June's 11.8 percent increase. Annual growth in M1 improved to 25.4 percent from 24.6 percent in June.
Julian Evans-Pritchard at Capital Economics, said credit growth is likely to slow further in the coming months given that the PBOC has recently refrained from easing monetary policy.
The impact of slower lending won't be felt immediately but by the end of the year it risks becoming a growing headwind to already weak investment growth, the economist noted.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.