China Banks: April TSF and RMB loans were weakened

Research evidence excerpt

China Banks: April TSF and RMB loans were weakened

Deutsche Bank

Research

Asia Industry Date

China 16 May 2026

China Banks

Banking / Finance Industry Update

Banks

April TSF and RMB loans were

weakened

Johnny Xie, CPA

Weaker-than-Expected April TSF & New Loans Research Analyst

April's Total Social Financing (TSF) and new loans addition both showed a +852-220-36141

sequential slowdown, with both coming in weaker than market estimates.

TSF in April was RMB625bn, a substantial slowdown from RMB5.2trn in March and

RMB1.2trn in April 2025. This was mainly dragged down by direct financing,

specifically a decrease of RMB528bn in undiscounted bills and RMB401bn in RMB

loans to the real economy. In contrast, indirect financing, corporate and

government bond issuance, and equity financing were positive contributors.

n Government bond issuance slowed to RMB904bn in April (vs. RMB973bn

in April 2025). While government bonds remain the primary driver for TSF

growth, this slower issuance was mainly due to front-loaded issuance in the

first three months of the year.

n Corporate bond issuance accelerated to RMB452bn (vs. RMB234bn in

April 2025), as the second positive contributor to TSF.

n Enterprise equity raising increased by RMB84bn (up from RMB39bn in

April 2025), indicating continued momentum in capital market activities.

n Off-balance Sheet Financing: Trust loans and undiscounted bankers'

acceptances both continued deleveraging trend.

n Loans write-offs slowed to RMB58bn but remain at a higher run rate

compared to pre-2023 levels.

New RMB loans decreased by RMB10bn MoM, signaling weaker credit demand

across corporate and household sectors. While the sequential decline in new RMB

loans can be partially attributed to front-loaded lending in 1Q, however, this type of