FINANCE

China Credit Seen Weak After Rare Lending Contraction

Published: Jun. 9, 2026 2:20 p.m. GMT+8

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China’s credit growth is expected to remain weak in May after a rare contraction in new lending the previous month, as subdued household borrowing and weak investment demand continue to weigh on financing.

A Caixin survey of 12 institutions showed economists’ average forecast for new yuan loans at about 504 billion yuan ($74 billion), down nearly 1.2 trillion yuan from a year earlier.

April lending contracted, driven by weak household credit, while corporate borrowing was largely supported by bill financing.

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New yuan loans forecast at 504 billion yuan in May, down nearly 1.2 trillion yuan year-on-year.
Weak household borrowing and soft corporate investment keep credit demand subdued, with reliance on bill financing.
Total social financing expected to slow to 1.81 trillion yuan; M2 money supply steady at 8.6%.

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