China’s Credit Growth Weakest on Record as Demand Languishes

  • Prolonged real estate slump has curbed appetite for borrowing
  • PBOC-backed paper downplays fears about state of the economy

The net increase in aggregate financing was 3.3 trillion yuan ($455 billion), according to Bloomberg calculations based on data released by the PBOC.

Photographer: Andrea Verdelli/Bloomberg
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China’s credit growth hit a fresh record low in June, highlighting subdued borrowing demand and prompting a central bank-backed publication to downplay concerns about weakness in the economy.

The stock of aggregate financing — a broad measure of credit — expanded 8.1% from a year ago, the slowest on record in data going back to 2017, official figures released on Friday show. The net increase in aggregate financing was 3.3 trillion yuan ($455 billion), according to Bloomberg calculations based on the data, below the 3.4 trillion yuan forecast in a Bloomberg survey.