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.