According to data released by the People’s Bank of China (PBOC), total loans given by Chinese financial institutions reached RMB 271.91 trillion (1 RMB = 13.12 INR) by the end of Q4 2025. This represents a 6.4% increase compared to last year. During the full year of 2025, banks added RMB 16.27 trillion in new loans. This shows that overall credit growth in China remained stable.
Loans to Enterprises and Public Institutions Increased
Loans given to enterprises and public institutions rose strongly in 2025. The total outstanding amount reached RMB 186.21 trillion, growing by 8.9% year-on-year. This was 0.7 percentage points higher than the previous quarter. For the full year, these loans increased by RMB 15.24 trillion.
Short-term loans and bill financing reached RMB 64.16 trillion, growing by 11% during the year. Medium and long-term loans stood at RMB 118.39 trillion, rising by 7.9% year-on-year and increasing by RMB 8.69 trillion in 2025.
When looking at the purpose of loans, fixed asset loans reached RMB 77.52 trillion, growing by 6.9%. Operating loans stood at RMB 75.91 trillion, increasing by 9.5% during the year.
Industrial and Service Sector Loans Showed Stable Growth
Medium and long-term loans to the industrial sector reached RMB 26.63 trillion, growing by 8.4% year-on-year. This was 2.2 percentage points higher than overall loan growth. Heavy industries received RMB 22.6 trillion in loans, up 7.8%, while light industries received RMB 4.04 trillion, up 11.8%.
Medium and long-term loans to the service sector stood at RMB 72.87 trillion, growing by 7.8% and increasing by RMB 5.24 trillion during the year. Excluding property sector loans, service loans grew by 9.4%. However, loans to the property sector within services grew only 1.8%.
Loans related to infrastructure industries reached RMB 43.73 trillion, growing by 6.9% year-on-year and increasing by RMB 2.8 trillion in 2025.
Inclusive Finance and Small Business Loans Grew Rapidly
China continued to support small businesses and inclusive finance. Loans to micro and small businesses (MSBs) reached RMB 36.57 trillion, growing by 11.1%, which is 4.7 percentage points higher than overall loan growth. These loans increased by RMB 3.63 trillion during the year.
Operating loans to rural households with credit limits below RMB 5 million reached RMB 9.81 trillion, increasing by RMB 241.4 billion in 2025.
Student loans stood at RMB 372.5 billion and grew strongly by 32.5% year-on-year, showing strong support for education financing.
(Note: From October 2024, the definition of inclusive MSB loans was adjusted to include loans with credit limits below RMB 10 million.)
Green Loans Grew at a Fast Pace
Green finance was one of the fastest-growing segments. By the end of Q4 2025, green loans reached RMB 44.77 trillion, growing by 20.2% year-on-year and increasing by RMB 7.72 trillion during the year.
Loans for green infrastructure upgrading reached RMB 19.94 trillion. Loans for green and low-carbon energy transition stood at RMB 8.48 trillion. Loans for ecological conservation and environmental restoration totaled RMB 5.03 trillion.
By sector, green loans for electricity, thermal power, gas, and water supply reached RMB 8.98 trillion, increasing by RMB 990.9 billion. Green loans for transport, warehousing, and postal services reached RMB 8.26 trillion, increasing by RMB 1.25 trillion.
(Note: From 2025, the rules for classifying green loans were revised, so 2025 data is not directly comparable with earlier years.)
Agro-Related Loans Continued to Rise
Agro-related loans reached RMB 53.57 trillion, growing by 6.5% year-on-year and increasing by RMB 3.44 trillion in 2025.
Loans to rural areas stood at RMB 39.24 trillion, increasing by RMB 2.44 trillion. Loans to rural households reached RMB 18.42 trillion, growing by 1%. Loans to the agricultural sector reached RMB 6.89 trillion, increasing by RMB 534.3 billion.
(Note: From June 2024, county town areas were removed from rural statistics to maintain comparability.)
Property Loans Declined
The property sector continued to face pressure. Total outstanding property loans stood at RMB 51.95 trillion, declining by 1.6% year-on-year and falling by RMB 963.6 billion during the year.
Loans for property development reached RMB 13.16 trillion, decreasing by 3%. Personal housing loans fell to RMB 37.01 trillion, down by 1.8% year-on-year.
This shows that China’s real estate sector remains weak.
Strong Support for Technology and Innovation Enterprises
China continued to support technology-based businesses. By the end of Q4 2025, 275,000 technology-based small and medium enterprises received loans. The loan approval ratio was 50.2%, which is 2 percentage points higher than in 2024.
Outstanding loans to technology-based SMEs reached RMB 3.63 trillion, growing by 19.8%, which is much higher than overall loan growth.
Additionally, 265,400 new and high-tech enterprises received loans, with a loan approval ratio of 57.3%. Loans to these enterprises reached RMB 18.61 trillion, growing by 7.5% year-on-year.
Household Loans Saw Slow but Steady Growth
Total household loans stood at RMB 83.28 trillion, growing by only 0.5% year-on-year. During 2025, household loans increased by RMB 441.2 billion.
Operating loans to households grew by 4%, reaching RMB 25.11 trillion and increasing by RMB 937.8 billion. Consumer loans (excluding housing loans) reached RMB 21.16 trillion, growing by 0.7% and increasing by RMB 180.2 billion.
Overall Conclusion
China’s 2025 credit data shows steady and stable loan growth. Business loans, green finance, infrastructure, and technology sectors saw strong expansion. Small businesses and agriculture continued to receive financial support. However, the property sector declined, and household borrowing remained weak. Overall, China’s banking system continued to support economic growth while facing challenges in real estate and consumer demand.
