New bank loans in China dropped -1.83 trillion yuan in 2025, or -10%, to 16.27 trillion yuan, the lowest since 2018.
This marks their 2nd consecutive annual decline.
China has been in an extended credit slowdown since early 2023, with the economy trapped in a deflationary spiral.
Weakness has been driven by sluggish demand from borrowers, as weak consumer confidence and declining business investment have eroded appetite for new debt.
China's 2008 moment is now.
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China’s credit crisis is worsening:
New bank loans in China dropped -1.83 trillion yuan in 2025, or -10%, to 16.27 trillion yuan, the lowest since 2018.
This marks their 2nd consecutive annual decline.
China has been in an extended credit slowdown since early 2023, with the economy trapped in a deflationary spiral.
Weakness has been driven by sluggish demand from borrowers, as weak consumer confidence and declining business investment have eroded appetite for new debt.
China's 2008 moment is now.