China lending misses expectations on weaker corporate and household demand

Geopolitical tensions are adding to uncertainty, said BofA Global Research.

New renminbi (RMB) loans reached $438.57b (RMB2.99t) in March 2026, falling short of expectations as loan growth slowed to 5.7% year-on-year (YoY) from 6% the previous month, according to a report by BofA Global Research.

Long-term corporate lending slowed to $198.01b (RMB1.35t) during the month as the capital expenditure recovery remained tentative.

Household borrowing was also weaker YoY across short and long-term tenors, whilst short-term corporate loans showed “relative resilience,” BofA Global Research said.

“After robust Jan-Feb readings, March data suggest households and firms remain cautious on new lending, with geopolitical tensions in the Middle East adding to uncertainty,” according to a report published on 13 April 2026.

“While we expect manufacturing and infrastructure investment demand to strengthen on the back of resilient exports and continued support from policy financing tools, credit demand still remains weak,” it added.

The limited improvement in secondary home sales in tier 1 cities, especially Shanghai, has yet to translate into a broader property market turnaround capable of boosting household mortgage demand.

(US$1 = RMB 6.82)