{
  "id": 7720168,
  "title": "China’s slower loan growth is the new normal, says central bank governor",
  "url": "https://urgent.news/2026/09/16/chinas-slower-loan-growth-is-the-new-normal-says-central-bank-governor",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T06:05:26.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/banking-finance/chinas-slower-loan-growth-new-normal-says-central-bank-governor"
  },
  "original_language": "en",
  "account": "China's central bank governor Pan Gongsheng has stated that slower loan growth is now the new normal as shrinking sectors such as property and local government financing sap credit demand faster than emerging industries can make up the difference. This slower but higher-quality loan growth is expected to become one of the regular features of macroeconomic operations, according to Pan, who shared these views in the Communist Party's primary theoretical journal, Qiushi. The decrease in lending to the property sector and local government financing vehicles, coupled with emerging industries struggling to offset the decline, has contributed to the slowdown in loan growth. While the tight credit demand poses challenges, Pan emphasized that maintaining previous rates of overall credit growth would be both difficult and unnecessary. Despite the weaker credit environment, financing conditions remain relatively accommodative, and effective borrowing needs continue to be met. China's vast portfolio of loans, exceeding 280 trillion yuan ($41.73 trillion), is predominantly tied to property and local government financing vehicles, which are currently contracting. In contrast, rapidly expanding industries like high-tech manufacturing and green technology, which account for over 40% of economic growth in the first half of 2026, rely more on technology, data, and intellectual property than on land and factories, making them less reliant on bank lending. Recent data shows that loans accounted for 45% of the increase in total social financing in 2025, while bond and equity financing combined made up 47%, surpassing loans for the first time. This shift towards a more diversified financial system, with bonds and equity financing playing a more significant role, may help stabilize leverage as China addresses the consequences of years of rapid debt accumulation.",
  "summary": "His comments come after data shows new loans rebounded in August from July’s record contraction, but still missed forecasts",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
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        "url": "https://urgent.news/2026/09/15/okinawa-voted-for-a-new-governor",
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      },
      {
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        "url": "https://urgent.news/2026/09/16/how-will-the-okinawa-governors-race-result-reshape-chinas-local",
        "published": "2026-09-16T03:00:12.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "China’s slower loan growth is the new normal, central bank governor says",
        "url": "https://urgent.news/2026/09/16/chinas-slower-loan-growth-is-the-new-normal-central-bank-governor-says",
        "published": "2026-09-16T04:30:32.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}