FINANCE

China Credit Growth Misses Forecasts as Household Borrowing Weakens

Published: Apr. 13, 2026 10:24 p.m. GMT+8

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Chinese financial institutions extended 2.99 trillion yuan ($415.5 billion) in new yuan loans in March, according to data released April 13 by the People’s Bank of China. Photo: IC

China’s new bank lending and total social financing grew at a slower pace in March from a year earlier, missing market expectations as weak household borrowing offset a surge in corporate bond issuance.

The weaker-than-expected credit data highlight the continued drag from the country’s property sector slump and point to a structural shift as companies increasingly bypass traditional bank loans in favor of cheaper direct financing.

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China's March new yuan loans: 2.99T yuan ($430B), down 650B yuan YoY from 2025, missed 3.2T forecast; Q1 2026 total 8.6T.
Household loans fell to 490.9B yuan (half YoY); TSF 5.2T, down 670B YoY, missed 5.5T; corporate bonds surged 394.5B.
M2 +8.5% YoY to 353.9T; shift to direct financing amid property slump.

AI generated, for reference only

Who’s Who

Huatai Securities: According to Huatai Securities, China's real estate cycle is still bottoming out, with secondary home sales volumes continuing to decline and homebuying sentiment recovering slowly.

Tianfeng Securities: Tianfeng Securities reported that strong short-term corporate loan figures included funds for repaying accounts receivable, while medium- and long-term borrowing may continue to decline. They also noted that lower credit bond yields since March have encouraged companies to use direct financing channels.

AI generated, for reference only