FINANCE

China Bank Debt Yields Hit Record Lows as Loan Demand Weakens

Published: Apr. 17, 2026 1:48 p.m. GMT+8

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Yields on China’s negotiable certificates of deposit (NCDs) — short-term debt issued by banks to raise funding — have fallen to record lows as weak loan demand leaves ample liquidity in the banking system.

The yield on one-year AAA-rated NCDs fell to a record 1.475% in early April and has since remained below 1.5%, while issuance so far this year has declined from a year earlier, according to data from the China Foreign Exchange Trade System.

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China’s one-year AAA-rated NCD yields fell to record 1.475% in early April, below 1.5%; issuance down YoY.
March new yuan loans 650B yuan lower than year ago.
March new yuan deposits 4.47T yuan, up 220B yuan YoY.

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