China's May loan growth slows despite better than expected financing
China's loan growth hit a slowdown in May 2026, with people and businesses not borrowing much even after the government tried to boost lending.
The People's Bank of China reported total financing at 2.03 trillion yuan ($300 billion), better than expected, but still over 11% less than last year.
New loans saw a small bounce from April but stayed pretty low overall.
China lending dominated by short-term bills
Household loans shrank for the second month straight, and long-term business loans, usually a sign of confidence, kept dropping too.
Most business lending came from short-term bill financing rather than real investment.
Meanwhile, government bond sales picked up compared to April but lagged behind last year.
Analysts say more government spending might be needed to really kickstart borrowing and help China's economic recovery gain momentum.