China’s new yuan loans extended by banks shrank by 10 billion yuan in April 2026, marking the first monthly contraction since July 2025 [1]. This drop came after a robust 2.99 trillion yuan in new loans was issued in March 2026 [1]. Aggregate financing grew by 621 billion yuan in April, less than half the 1.2 trillion yuan expansion recorded in April 2025 [2].
Loan demand softened in April amid a typical seasonal slowdown and cautious credit appetite, despite China’s better-than-expected economic growth in the first quarter, which was fueled by resilient exports [1]. Outstanding yuan loans grew by 5.6% year-on-year in April, a slight deceleration from 5.7% growth in March [1].
Total new loans from January to April 2026 reached 8.59 trillion yuan, down from 10.06 trillion yuan during the same period in 2025 [1]. The decline in credit supply contrasts with strong economic indicators, reflecting a more cautious lending environment heading into the second quarter.
The People’s Bank of China pledged to maintain an appropriately accommodative monetary stance and to increase support for expanding domestic demand and technological innovation, aiming to stabilize credit growth amid the slowdown [1]. On May 14, the PBOC released the April credit data confirming these trends [2, 1].
