By Published On: January 15, 20260.8 min read

China’s new bank lending has recorded its second consecutive annual decline, highlighting persistent weak credit demand amid ongoing efforts by lawmakers and policymakers to support domestic growth. After experiencing its first annual drop in new lending in 13 years in 2024, China has seen another fall in new yuan loans in 2025.

In 2024, new yuan loans totalled ¥18.09 trillion. This figure further declined to ¥16.27 trillion in 2025. To put this into perspective, new yuan loans had reached a record high of approximately ¥22.8 trillion in 2023, up from ¥21.31 trillion in 2022.

The downward trend in lending is driven by several factors, chief among them being the slump in the property market, which has dampened consumer confidence and spending. Additionally, concerns around overcapacity persist, and Beijing’s stimulus measures are viewed as insufficiently targeted to effectively boost demand.

For forex traders, the ongoing decline in China’s lending activity signals caution regarding the yuan’s outlook, as subdued credit growth may weigh on economic performance and market sentiment.

Original Source: Justin Low of investinglive.com

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