China’s Credit Demand Slumps as Covid Lockdowns Curb Borrowing
- Lending slumps to lowest since 2017 on weak household demand
- Shadow banking also declines, although bond issuance holds up
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China’s loan growth weakened sharply in April to the worst level in almost five years, with mortgage loans contracting again as Covid lockdowns and the property market slump disrupted economic activity and sapped borrowing demand.
Financial institutions offered 645 billion yuan ($94.9 billion) of new loans in the month, down from 3.1 trillion yuan in March, the People’s Bank of China said Friday. That was the lowest level since December 2017 and less than half the estimate of 1.5 trillion yuan.