Weak household demand causes 82.9% drop in new Chinese bank loans

This was blamed on weak household loan demand, particularly short-term loans.

Banks in China added only about $30.95b (RMB0.22t) in new loans in October 2025, a “sharp” drop compared to September’s $181.5b (RMB1.29t).

The weakness came from China’s household sector, according to UOB Kay Hian. Total household loans declined by $50.65b (RMB360b), made up of a $40.38b (RMB287b) drop in short-term loans, and an RMB70b fall in long-term loans.

Outstanding bank loans growth weakened further to 6.5% year-on-year (-0.1 percentage point (ptt)), whilst outstanding total social financing (TSF) growth eased to 8.5% year-on-year (-0.2ppt), marking continued weakness in credit demand, UOBKH analysts noted.

(US$1 = RMB7.11; as of 18 November 2025, Morningstar via Google)