Chinese banks issued CNY 900 billion in new loans in February 2026, down from CNY 1,009 billion in the same month a year earlier and slightly below market forecasts of CNY 979 billion. This marked the eighth consecutive year-on-year decline in new yuan lending, highlighting weaker borrowing demand from Chinese firms and reflecting the authorities’ efforts to curb capacity in selected loan-dependent goods-producing industries.
Nonetheless, aggregate financing—a broad gauge of overall credit in the economy—rose to CNY 2.38 trillion from CNY 2.23 trillion a year earlier, beating expectations of CNY 2.13 trillion, even as the pace of government bond issuance slowed.
