China’s economy is showing fresh signs of a slowdown

China’s net new loans fell by -$50.4 billion in July, the 3rd such decline in more than 2 decades and more than TRIPLE what economists had forecast.

Loans extended specifically to the real economy saw an even sharper -$87.5 billion in net repayments, the largest monthly decline in data going back to 2002.

Aggregate financing, a broader measure of total credit, still rose +$207.7 billion, but nearly all of that came from +$192.9 billion in government bond sales rather than organic private lending.

Chinese households and businesses are choosing to pay down debt instead of taking out new loans, a clear sign of weakening economic confidence.

⚠️China's economy is showing fresh signs of a slowdown:

China's net new loans fell by -$50.4 billion in July, the 3rd such decline in more than 2 decades and more than TRIPLE what economists had forecast.

Loans extended specifically to the real economy saw an even sharper… pic.twitter.com/Ta7iAN4Ie5

— Global Markets Investor (@GlobalMktObserv) August 19, 2026