China’s net new loans fall $50.4bn in July, third drop this century
China's net new lending contracted by $50.4bn in July, only the third monthly decline this century, while loans to the real economy posted record net repayments.
Chinese bank lending weakened sharply in July, with net new loans falling by $50.4bn. That marks only the third monthly decline this century and was more than three times larger than expected.
Loans extended specifically to the real economy showed an even larger drop, with net repayments of $87.5bn — the biggest monthly decline in data going back to 2002.
Aggregate financing rose by $207.7bn, but almost all of the increase came from $192.9bn in government bond sales rather than organic private lending. Corporate and household longer-term loans shrank, pointing to weak investment appetite and subdued property demand.
Source: The Kobeissi Letter