New yuan loans extended by Chinese banks declined to CNY 2.99 trillion in March 2026 from CNY 3.363 trillion a year earlier, coming in well below the median market forecast of CNY 3.4 trillion and marking the weakest March reading since 2021. Similarly, aggregate financing — a broad gauge of overall credit flows — fell to CNY 5.23 trillion in March from CNY 5.896 trillion, missing expectations of CNY 5.4 trillion.
Credit demand from households remained subdued, as the protracted property crisis, weak consumer purchasing power, and an oversupply of housing continued to weigh on demand for new homes, particularly outside major cities. At the same time, government bond issuance declined to about CNY 1 trillion, down from CNY 1.5 trillion.
