China's net new loans fell $50.4B in July, the sharpest decline in two decades, signaling deteriorating economic activity and reduced private lending demand.
Macro & Markets ·
China's net new loans fell $50.4 billion in July, more than 3 times larger than expected and marking only the third monthly decline this century. Loans to the real economy posted an even sharper contraction of $87.5 billion in net repayments, the largest such monthly decline since 2002. Aggregate financing rose $207.7 billion, but $192.9 billion of that came from government bond sales rather than private lending, as corporate and household longer-term loans shrank amid weak investment and property demand.