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China Credit Growth Slows as Central Bank Normalizes Policy

  • Shadow banking drops by 738 billion yuan, most since 2017
  • Lending also falls off from November to 1.26 trillion yuan
Updated on

China’s credit growth moderated in December, suggesting that the massive increase in credit since last year may have peaked as the central bank seeks to normalize policy.

With the economy’s recovery picking up pace, the central bank is starting to explore the possibility of exiting some emergency stimulus measures rolled out during the pandemic, while maintaining necessary support in certain areas.