China’s Loan Growth Falls to Record Low as Demand Struggles

(Bloomberg) — Loan growth in China increased at the slowest pace on record in December, as weak business confidence continues to dampen borrowing demand.

Loans in China’s currency expanded 10.4% in the month, according to the central bank, the slowest increase in records going back to 2003.

Credit demand from households and businesses was persistently weak in 2023. An ongoing slump in the property sector, which once accounted for almost a third of all loans, is reducing demand for mortgages. Soft domestic demand has made many companies reluctant to expand, and banks are wary of lending to developers as many have defaulted.