FX.co ★ China New Yuan Loans Slow

Chinese banks issued a net CNY 520 billion in new yuan loans in May 2026, down from CNY 623 billion in the same month a year earlier and broadly in line with market forecasts of CNY 550 billion. The outcome signaled a rebound after an unexpected contraction in domestic bank lending in the previous month. At the same time, aggregate financing—a broader gauge of overall credit—rose by a net CNY 2.03 trillion. Although this was below the CNY 22.9 trillion recorded a year earlier, it exceeded market expectations of CNY 1.87 trillion. While the data suggest some resilience following the sharp deceleration at the start of the year, they also continue to highlight a decline in new bond issuance by China’s central and local governments, consistent with weaker credit demand amid persistently sluggish consumer spending.