China’s Credit Expansion Disappoints Despite Stronger Bond Sales

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A slowdown in China’s loan growth extended to a fresh record in a sign borrowing demand remains sluggish, though broader credit picked up thanks to strong government bond sales.

The stock of yuan-denominated loans to the real economy expanded 7.1% in February from a year ago, the slowest pace in data going back to 2003. Outstanding aggregate financing, a broad measure of credit, picked up slightly, according to figures released by the People’s Bank of China on Friday.