AI Data Insight
In April 2026, China's new medium- to long-term loans to non-financial enterprises recorded -20 billion RMB. Although narrowing from the previous month's low of -410 billion RMB, it maintained a net contraction trend, unexpectedly dragging down overall new loan growth. Affected by low capacity utilization and sluggish terminal demand, both the corporate and household sectors are simultaneously deleveraging. Short-term credit expansion will highly depend on government bond issuance.