“Demand rebounded in December supported by huge government financing,” said Zhaopeng Xing, senior China strategist at Australia & New Zealand Banking Group. “This will likely continue in 2025 as the fiscal front will be more proactive.”
An outpouring of Chinese government bond issuance and early signs of improvement in the housing market helped stir up appetite for financing in December, drawing to a close a year when new loans declined for the first time since 2011.
The worst of the plunge in demand for credit is likely over as Beijing’s stimulus blitz kicks in. Aggregate financing climbed 2.86 trillion yuan ($529.67 billion) last month while 998 billion yuan in new loans was extended, the highest totals for both measures in three months.
