New yuan loans in China dropped sharply to CNY 220 billion in October 2025, down from CNY 1290 billion in September and CNY 500 billion in the same month last year. The figure also came in well below market expectations of CNY 500 billion, underscoring continued weakness in credit demand. The sharp decline highlights subdued consumer spending and broader economic softness, posing a significant challenge for policymakers seeking to support China’s slowing economy. Meanwhile, total social financing which is a broad measure of credit and liquidity in the economy as it includes off-balance sheet forms of financing such as initial public offerings, loans from trust companies and bond sales, decreased to CNY 810 billion from CNY 3530 billion in September and above forecasts of CNY 12300 billion. It was also lower than CNY 1400 billion a year earlier. Loan growth also slowed to 6.5%, the least since at least 1998, below forecasts of 6.6% and 7.8% a year earlier.