Part 6/9:
Despite experiencing record low interest rates, Chinese banks are struggling with sluggish loan demand. The People’s Bank of China reported a 7.2% year-on-year uptick in total loans in April, yet consumer lending saw a steep contraction, the largest drop since early 2024. This stagnation reflects weak domestic consumption and poses an ongoing issue for the economic outlook.
Though banks are aggressively promoting loan campaigns and the government is injecting substantial capital into major state banks, experts warn that without renewed consumer and business confidence, loan growth may remain muted. With trade tensions with the US still looming, uncertainties around economic recovery call for further stimulus measures.