New yuan loans issued by Chinese banks declined by a net CNY 10 billion in April 2026, compared with a net increase of CNY 285 billion in the same month a year earlier and falling well short of market expectations for a net rise of CNY 300 billion.
Similarly, aggregate financing—a broad gauge of overall credit flows—shrank by a net CNY 620 billion, the weakest level in two years and far below forecasts for a net increase of CNY 1.5 trillion.
These figures indicate a slowdown in the issuance of new central and local government bonds in China and underscore subdued credit demand, as overall economic activity remains sluggish despite signs of forthcoming stimulus measures.
