Aug 12, 2020 04:43 AM

Credit Growth Slows in July as Authorities Dial Back Stimulus

What’s New: China’s credit growth slowed in July as authorities fine-tuned their monetary policy stance and pared back the expansion of stimulus.

Chinese banks issued 992.7 billion yuan ($142.5 billion) of new loans in the month, 63 billion yuan less than the same time last year and lower than estimates of 1.2 trillion yuan. It is the first year-on-year drop in monthly loan growth since the Covid-19 outbreak, central bank data showed.

Total social financing added 1.69 trillion yuan in July, up 406.8 billion yuan from a year ago but less than the 3.4 trillion yuan in June.

The background: Analysts attributed the slowing credit growth to weakening stimulus as policymakers shift away from crisis mode to a more targeted approach.

In June, authorities signaled a slower pace of stimulus policies by calling for reasonable credit growth as the country’s economic recovery picks up steam.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei ( and editor Bob Simison (

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