FX.co ★ China’s New Loans Turn Negative in October, Marking Sharp Reversal in Credit Activity

China’s new lending unexpectedly swung into negative territory in October 2026, signaling a sharp contraction in credit activity after a solid expansion the previous month. New loans fell to -100.0 billion yuan in October, compared with 1,080.0 billion yuan in September 2026.

The turnaround underscores a sudden cooling in borrowing demand or a tightening in credit supply during the period, following what had been a positive lending environment just one month earlier. The reversal could have implications for investment, consumption, and broader economic momentum if sustained, as bank lending is a key channel for financing corporate and household activity in China.

The data, updated on 13 November 2026, will likely focus investor and policymaker attention on whether the October figure reflects a one-off adjustment or the start of a more cautious lending trend heading into the final months of the year.