FX.co ★ China New Bank Loans Beat Expectations in June

In June 2025, Chinese banks extended CNY 2.24 trillion in new yuan loans, marking the highest level in three months. This figure represents a significant increase from May's CNY 620 billion and surpasses the anticipated CNY 1.8 trillion. It also exceeds the CNY 2.13 trillion recorded in June 2024, driven by a seasonal spike in lending and an uptick in government bond issuance. June is traditionally a period of robust credit expansion as banks intensify lending efforts to achieve their quarterly objectives. This year, the government's early bond sales further stimulated overall financing activities. Total social financing, a comprehensive measure of credit and liquidity within the economy, rose to CNY 4.2 trillion, up from CNY 2.29 trillion in May and CNY 3.3 trillion in the same month last year, and it was significantly above the projected CNY 3.65 trillion. At the same time, outstanding loan growth remained stable at 7.1%, resting at its lowest levels since 1998 but slightly outpacing the 7% expectation. Additionally, the M2 money supply growth saw an uptick, climbing to 8.3% from May's 7.9% and exceeding the forecasted 8.1%.