China’s Credit Growth Slows in October as Borrowing Demand Falters

China’s credit expansion came in well below expectations in October, with key indicators for new lending and aggregate financing sharply missing market forecasts — a sign that subdued domestic demand remains a major drag on the country’s economic momentum.

New yuan-denominated loans totaled 220 billion yuan ($31 billion) last month, down 280 billion yuan from the same month last year, according to data released Thursday by the People’s Bank of China. The figure missed the median forecast of 409.9 billion yuan from a Caixin survey of 12 institutions.

A broader measure of financing known as aggregate financing to the real economy — which includes loans, bonds, and off-balance-sheet credit — came in at 815 billion yuan, far short of the 1.2 trillion yuan expected and nearly 600 billion yuan below the same month in 2024.