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China Credit Expansion Moderates Amid Warning on Debt Binge

  • Slowdown in lending followed a record jump in first quarter
  • Officials have publicly highlighted need for deleveraging
Updated on

China’s broadest measure of new credit rose less than expected last month, suggesting that the central bank is starting to temper a flood of borrowing amid warnings from officials about potential side effects of the debt binge.

Aggregate financing was 751 billion yuan ($115 billion) in April, the People’s Bank of China said, below all 26 analyst forecasts in a Bloomberg survey. New yuan loans were 555.6 billion yuan, compared with the median estimate for 800 billion yuan.