China Credit Demand Expected to Stay Weak in July

DBS Group Research anticipates that China’s credit demand will remain subdued in July. New yuan loans are projected at around RMB 10.8 billion, while M2 money supply growth is estimated at 8% year-on-year.

Both corporate and household medium- to long-term borrowing are expected to soften. The analysis points to cautious sentiment among borrowers and a pullback in mortgage lending as contributing factors.

These trends reflect ongoing caution in China’s credit market, potentially weighing on economic activity in the near term.