China's New Yuan Loans Expanded Sharply in November — Update

China's new yuan loans expanded sharply in November, in part thanks to seasonality, but missed expectations amid continued subdued credit demand.

Chinese banks issued 390 billion yuan, equivalent to $55.26 billion, of loans last month, up from 220 billion yuan in October, according to calculations by The Wall Street Journal based on data released Friday by the People's Bank of China.

Economists surveyed by The Wall Street Journal had anticipated new yuan loans of 475 billion yuan last month.

"The PBOC has argued that weak loan growth reflects factors like local government debt swaps, loan write-offs and shifts towards other forms of financing rather than lackluster private demand, but the weakness in lending to households suggests that slowing mortgage demand is also a key drag," said Leah Fahy, an economist at Capital Economics.

"It's also apparent that the subsidies for consumer loans launched at the start of September have failed to shore up household loan demand," Fahy added.

Total social financing, a broader metric that also includes nonbank credit, stood at 2.49 trillion yuan in November, up from 810 billion yuan in October.

M2, the broadest measure of money supply, rose 8% in November from a year earlier, down from the 8.2% increase in October and falling short of the 8.1% growth expected by surveyed economists.

Economists widely expect China's credit expansion to remain weak in the coming months amid falling investment and a protracted property slump.

Write to Singapore Editors at singaporeeditors@dowjones.com

(END) Dow Jones Newswires

December 12, 2025 05:37 ET (10:37 GMT)