China Credit Shrinks for First Time, Loan Growth Disappoints
- Credit contracts as government bonds record net repayment
- Shadow banking credit shrinks in sign of risk prevention: JLL
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China’s credit in April shrank for the first time as government bond sales slowed, while loan expansion was worse than expected in a sign of weak demand.
Aggregate financing, a broad measure of credit, decreased by almost 200 billion yuan ($27.7 billion) in April from the previous month, according to Bloomberg calculations of data released by the People’s Bank of China on Saturday. That’s the first time the measure has declined since comparable data began in 2017, reflecting a contraction in financing activity.