China's aggregate financing from January to July 2025 totaled 23.99 trillion yuan, falling short of the estimated 24.457 trillion yuan, according to recent central bank data. New yuan-denominated loans during the same period reached 12.87 trillion yuan, also below the forecasted 13.22 trillion yuan and marking the lowest level since 2007. In July, new loans contracted for the first time in approximately 20 years, reflecting weak borrowing demand amid concerns over the country's economic outlook. Despite this contraction in new loans, China's money supply indicators showed growth in July, with M2 rising 8.8% year-over-year, exceeding estimates of 8.3%, M1 increasing by 5.6%, and M0 up 11.8%. Outstanding aggregate financing at the end of July stood at 431.26 trillion yuan. Loan growth was driven by household loans, which increased by 680.7 billion yuan, and loans to enterprises and public institutions, which rose by 11.63 trillion yuan, accounting for 5.3% and 90.4% of total new lending, respectively. The unexpected contraction in bank loans has intensified concerns about a potential economic slowdown in China, the world's second-largest economy.