Key facts
- New yuan loan forecasts for May stand at approximately 504 billion yuan.
- This figure is nearly 1.2 trillion yuan lower than the same period last year.
- April saw a contraction in lending, driven by weak household credit.
- Corporate borrowing relied heavily on bill financing.
- Total social financing is expected to slow to 1.81 trillion yuan.
- M2 money supply is projected to remain steady at 8.6%.
China's credit growth is expected to remain sluggish in May, following a rare contraction in new lending during the previous month. Economists surveyed by Caixin anticipate new yuan loans to reach approximately 504 billion yuan ($74 billion) in May, a significant decrease of nearly 1.2 trillion yuan compared to the same period last year.
The contraction in April lending was primarily attributed to weak household credit, while corporate borrowing was largely sustained by bill financing, indicating subdued demand for traditional loans. Analysts expect total social financing, a broader measure of credit in the economy, to slow to 1.81 trillion yuan. The M2 money supply is projected to remain steady at 8.6%.