Chinese banks extended CNY 910 billion in new yuan loans in December 2025, sharply higher than CNY 390 billion in November. Although lending remained below the CNY 990 billion recorded a year earlier, it exceeded market expectations of around CNY 800 billion, underscoring the impact of policy-based financing tools and government stimulus measures that are beginning to support credit demand. Total social financing, a broad gauge of credit and liquidity, rose to CNY 2,210 billion, down from CNY 2,490 billion in November and CNY 2,860 billion a year earlier. Outstanding loan growth held steady at a record-low 6.4%, well below the 7.6% pace seen a year ago but slightly above market expectations of 6.3%.