FX.co ★ China New Yuan Loans Beat Market Expectations in December

In December 2025, Chinese banks issued new yuan loans totaling CNY 910 billion, significantly higher than the CNY 390 billion recorded in November. Though this figure was lower than the CNY 990 billion seen the previous year, it still surpassed market predictions of approximately CNY 800 billion. This highlights the effectiveness of policy-driven financing initiatives and government stimulus efforts in bolstering credit demand. Total social financing, which offers a comprehensive view of credit and liquidity, increased to CNY 2,210 billion. This was a decrease from CNY 2,490 billion in November and CNY 2,860 billion the prior year. Meanwhile, growth in outstanding loans remained stable at a record-low rate of 6.4%, which was notably less than the 7.6% pace observed a year earlier but slightly higher than market forecasts of 6.3%.