BRIEFING

CX Weekly Briefing: Bank Lending Falls for First Time in Decades

Published: Aug. 15, 2025 8:45 p.m. GMT+8

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A rundown of what has been making headlines in and around China over the past week:

Finance and economics

Tepid credit appetite: China’s bank lending unexpectedly contracted in July, the first decline in two decades, underscoring faltering credit demand amid a sluggish economy. Data released Wednesday by the People’s Bank of China showed new yuan-denominated loans fell by 50 billion yuan ($6.95 billion), a sharp reversal from the same period a year earlier. Aggregate financing, a broader measure of credit, totaled 1.16 trillion yuan, also below forecasts. While seasonal factors typically dampen July lending, the magnitude of the decline underscores the challenge Beijing faces in spurring corporate and household borrowing to support growth.

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China’s July bank lending contracted by 50 billion yuan, the first decline in 20 years, highlighting weak credit demand; CPI stayed flat year-on-year, while PPI fell 3.6%.
Beijing introduced interest subsidies for consumer and service-sector loans, sanctioned two EU banks, and suspended approval for the Alzheimer’s drug GV-971.
Nvidia affirmed U.S. compliance amid AI chip sales scrutiny; IVD Medical’s ethereum purchase triggered a 28% stock surge; U.S. extended China tariff truce by 90 days.

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Who’s Who

Nvidia Corp.: Nvidia Corp. stated it complies with U.S. government rules regarding its global market participation. This follows rumors that the company agreed to give 15% of its China AI chip sales revenue to the U.S. government. Washington recently reauthorized sales of Nvidia's H20 AI chips to China.

Advanced Micro Devices Inc.: Advanced Micro Devices Inc. (AMD) has been rumored to pay 15% of its China AI chip sales revenue to the U.S. government. AMD did not comment on these reports when contacted by Caixin. This comes amidst Washington reauthorizing sales of AI chips to China, a move influencing the competitive landscape among tech firms.

IVD Medical Holding Ltd.: On Monday, IVD Medical Holding Ltd. **saw its shares surge by 28%** after announcing plans to purchase up to HK$880 million ($112 million) in Ethereum as a reserve asset. The in vitro diagnostic device manufacturer made its initial purchase of 5,190 coins through the HashKey Exchange.

HashKey Exchange: HashKey Exchange, a licensed virtual asset exchange in Hong Kong, facilitated IVD Medical Holding Ltd.'s purchase of ethereum. This acquisition led to a 28% surge in IVD Medical Holding Ltd.'s shares.

MicroStrategy Inc.: MicroStrategy Inc. is a company that hoards crypto assets like Bitcoin and Ethereum to generate a premium for its stock. It then issues new shares at that premium to buy more crypto. This strategy has been emulated by IVD Medical Holding Ltd., which recently announced it would buy up to HK$880 million of Ethereum as reserve assets.

CK Hutchison Holdings Ltd.: CK Hutchison Holdings Ltd. is considering adding a Chinese mainland strategic investor to a consortium bidding for its global port assets. This move is expected to help navigate regulatory challenges for the sale of 43 port facilities in 23 countries. China Cosco Shipping Corp. Ltd. is a potential candidate. The transaction is not expected to be finalized within 2025.

BlackRock Inc.: BlackRock Inc. had led a consortium negotiating to acquire CK Hutchison Holdings Ltd.'s global port assets. However, the exclusive negotiation period has since expired. CK Hutchison is now exploring adding a Chinese mainland strategic investor to the bidding consortium.

China Cosco Shipping Corp. Ltd.: China Cosco Shipping Corp. Ltd. is a state-owned company identified as a potential strategic investor in CK Hutchison Holdings Ltd.'s global port assets. This move may help navigate regulatory challenges in the sale of 43 port facilities across 23 countries, including two at the Panama Canal. The transaction is not expected to be finalized within 2025.

Shanghai Green Valley Pharmaceutical Co. Ltd.: Shanghai Green Valley Pharmaceutical Co. Ltd. developed sodium oligomannate (GV-971), an Alzheimer's drug. Chinese regulators recently withheld full market approval for GV-971. The drug has been controversial, facing accusations of fabricated research papers, and its production and sales were suspended in June after its registration expired.

UAB Urbo Bankas: UAB Urbo Bankas is a Lithuania-based bank that China's commerce ministry sanctioned. This action came in response to the EU sanctioning two Chinese financial institutions. Chinese organizations and individuals are now prohibited from engaging in transactions or cooperation with UAB Urbo Bankas.

AB Mano Bankas: AB Mano Bankas is one of two Lithuania-based banks sanctioned by China's Ministry of Commerce. This action was taken in response to the EU sanctioning two Chinese financial institutions. Chinese entities are now prohibited from engaging in transactions or cooperation with AB Mano Bankas.

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What Happened When

June 2021：: Previous in-person meeting between U.S. President Biden and Russian President Putin in Geneva, Switzerland.

2025：: U.S. President Donald Trump suspended certain tariff hikes on Chinese goods by 90 days.

By 2025：: CK Hutchison’s global port assets transaction is not expected to be finalized.

June 2025：: China’s consumer prices slightly rebounded before leveling off in July 2025.

June 2025：: Shanghai Green Valley Pharmaceutical suspended production and sales of GV-971 after drug registration expired.

July 2025：: U.S. and Chinese trade negotiators held talks in Stockholm and discussed the potential reprieve for tariffs.

July 2025：: Year-on-year growth in China's core CPI accelerated by 0.1 percentage points from June 2025 to 0.8%. Also, China’s producer price index (PPI) year-on-year decline remained unchanged at 3.6%.

July 18, 2025：: The EU added Chinese financial institutions to its sanctions list targeting Russia.

Late July 2025：: The State Council approved the plan for interest subsidies on personal consumer loans and service sector business loans.

August 8, 2025：: Russian President Vladimir Putin called Chinese President Xi Jinping to brief him about the upcoming meeting with U.S. President Donald Trump over the Russia-Ukraine war.

Monday, August 11, 2025：: IVD Medical Holding Ltd.’s shares surged 28% after announcing a plan to buy up to HK$880 million of ethereum as reserve assets.

August 13, 2025：: People’s Bank of China released data showing new yuan-denominated loans contracted by 50 billion yuan in July 2025, the first decline in two decades.

August 13, 2025：: China’s commerce ministry sanctioned two EU banks—UAB Urbo Bankas and AB Mano Bankas—in response to the EU's sanctions on Chinese financial institutions.

August 13, 2025：: Chinese drug sodium oligomannate (GV-971) left off the approval list released by the National Medical Products Administration, seen as implicit disapproval.

Before August 14, 2025：: The exclusive negotiation period with a BlackRock Inc.-led consortium for CK Hutchison's port assets expired.

Thursday, August 14, 2025：: CK Hutchison's executive stated that adding a Chinese mainland investor to the consortium for global port assets would be beneficial; the exclusive negotiation period with BlackRock had expired before this.

August 2025：: Nvidia's H20 AI chips for the China market were reauthorized by Washington and scrutinized by Beijing regarding security vulnerabilities.