Business

China’s New Bank Loans Drop for First Time Since 2005

New data suggest that ‘private sector credit demand remains subdued,’ says an economist at Capital Economics.
China’s New Bank Loans Drop for First Time Since 2005
A bank employee counting 100-yuan notes at a bank counter in Nantong, in China's eastern Jiangsu Province on June 13, 2023. STR/AFP via Getty Images
Andrew Moran
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New bank loans in China contracted last month for the first time in 20 years, new data released on Aug. 13 show.

In July, new yuan loans declined by 50 billion yuan ($6.97 billion), following the 2.24 trillion yuan ($312.2 billion) increase in June. This represented the first monthly decline since July 2005.
Andrew Moran
Andrew Moran
Author
Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."