Chinese credit hits the skids

Friday 14 November 2025

In October, Chinese banks made 220bn yuan in new loans, a sharp decline from 1.29 trillion yuan in September.

Compared to a year ago, the flow of loans increased 6.5%, a record low.

Under the hood, corporate loans fell to 350bn yuan from 1.22 trillion yuan, while household loans, including mortgages, shrank by 360bn yuan in October compared to an increase of 389bn yuan in September.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.