China’s July Bank Loans Expected to Rebound on Low Base

China’s new yuan loans likely rebounded in July compared with a rare contraction a year earlier, though underlying credit demand remains sluggish across the broader economy, a Caixin survey showed.

An average forecast by eight financial institutions　estimates Chinese banks extended 126 billion yuan ($18.7 billion) in new yuan loans last month. 

While this marks an improvement from a 50 billion yuan drop in July 2025, half of the surveyed institutions project the figure to be below 100 billion yuan due to weak borrowing appetite.