DBS Group Research forecasts subdued credit demand in China for July, with new Yuan loans expected to total approximately RMB 10.8 billion. Money supply growth (M2) is projected to increase by 8% year-on-year, signaling a cautious lending environment, according to FX Street.
The research highlights a likely softening in medium- to long-term borrowing from both corporates and households. This trend is attributed to cautious borrowing behavior and increased mortgage prepayments, suggesting restrained credit expansion amid ongoing economic uncertainties.
For Japanese investors and markets, these developments indicate continued challenges in China’s credit cycle, which could influence regional financial flows and risk sentiment across FX and equities sectors.