Five Things to Know About China’s Lackluster Credit Demand

Chinese households aren’t spending as much as before and the private sector isn’t borrowing or investing as much. That’s a problem, because until they do, the economic recovery will struggle to gain momentum.

Since the second quarter of 2022, M2, a measure of money supply that includes cash and savings deposits, has maintained double-digit growth, reaching as high as 12.9% year-on-year in February before dipping to 11.6% in May.