China’s credit growth slows sharply as households repay record debt in April

Households repaid nearly 787 billion yuan—highest on record

China’s credit expansion cooled dramatically in April, running far below forecasts as both banks and households pulled back. A broad financing gauge rose under 630 billion yuan, versus roughly 1.2 trillion a year earlier, and new loans actually contracted. The biggest shock: households net repaid 786.9 billion yuan, the largest amount since 2010, with both medium and short-term borrowing dropping. Analysts warn the move could end the fixed-asset investment rebound, keeping domestic demand subdued.