FINANCE

China’s September Lending Rebounds, Beating Forecasts

Published: Oct. 15, 2026 2:41 a.m. GMT+8

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The latest data released by the People's Bank of China on Oct. 14 showed that yuan loans increased by 11.52 trillion yuan in the first three quarters of 2026. Photo: IC photo

China’s new bank lending and total social financing rebounded in September, exceeding economists’ forecasts as government bond issuance and targeted policy support bolstered credit growth.

The pickup comes amid a shift in financing toward technology and green development and away from property-related borrowing. Analysts said lending to policy-supported sectors is helping cushion the downturn in real estate, though it may not fully offset the decline.

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September new yuan loans hit 1.1 trillion yuan, beating forecasts; total social financing reached 3.55 trillion yuan.
Government bond issuance drove the rebound; lending shifted toward tech and green sectors, away from property.
M2 growth slowed to 7.2% and M1 to 3.2%; corporate and household lending showed tentative stabilization.

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What Happened When

April 2026：: Bill financing last contracted before September 2026.

August 2026：: New loans were 60 billion yuan; total social financing was sluggish; medium- and long-term household loans dropped by 82.2 billion yuan.

September 2026：: New bank lending reached 1.1 trillion yuan, exceeding economists' forecasts; total social financing reached 3.55 trillion yuan, up 20 billion yuan year-on-year.

September 2026：: Government bond issuance reached 1.5 trillion yuan, up 346.9 billion yuan year-on-year; net corporate bond financing fell by 39.3 billion yuan.

September 2026：: Three-month rediscount rate at national joint-stock banks rose from 0.5% at the start of the month to 0.7% at month-end, marking the first quarter-end increase in 2026.

September 2026：: Household loans were broadly flat after two consecutive months of contraction; short-term loans fell by about 90 billion yuan; medium- and long-term loans increased by 87.4 billion yuan, reversing August 2026's 82.2 billion yuan drop.

September 2026：: Corporate lending strengthened; new loans to businesses totaled 1.3 trillion yuan; short-term loans increased by 460 billion yuan and medium- and long-term loans by 890 billion yuan; bill financing fell by 50 billion yuan, its first contraction since April 2026.

January-September 2026：: New yuan loans totaled 11.5 trillion yuan, down 3 trillion yuan from the same period in 2025; total social financing fell by 2.6 trillion yuan to 27.5 trillion yuan; household loans contracted by 1 trillion yuan; corporate loans increased by 12.55 trillion yuan; bill financing reached 1.2 trillion yuan; net corporate bond issuance rose by 1.2 trillion yuan year-on-year to 2.75 trillion yuan; domestic equity financing by nonfinancial companies increased to 535.9 billion yuan.

End of September 2026：: Broad money supply (M2) rose 7.2% year-on-year to 359.6 trillion yuan, with growth easing by 0.3 percentage points from August 2026; narrow money supply (M1) increased 3.2% to 116.8 trillion yuan, slowing by 0.9 percentage points.

AI generated, for reference only