China's February New Yuan Loans Plunge to 900 Billion Yuan, Missing Expectations

In February 2026, Chinese banks issued new yuan loans totaling 900 billion yuan (approximately $130 billion), a sharp decline from the 4.71 trillion yuan recorded in January and falling short of analysts' expectations of around 979 billion yuan, according to Reuters calculations derived from People's Bank of China (PBOC) data. This drop reflects typical seasonal patterns, including banks front-loading lending earlier in the year and reduced activity during the extended Lunar New Year holiday, compounded by ongoing weak credit demand amid a prolonged property sector downturn and cautious corporate borrowing. Year-on-year growth in outstanding yuan loans slowed slightly to 6.0% from 6.1% in January, matching but not exceeding forecasts.

Most Asian currencies kept to a tight range on Monday as persistent uncertainty over the U.S.-Israel war on Iran and caution before a Federal Reserve meeting put the dollar near 10-month highs. The Australian dollar was an outperformer, rising ahead of a Reserve Bank of Australia meeting on Tuesday where the central bank is widely expected to hike rates. Most other Asian currencies dithered as the Iran conflict showed few signs of easing, keeping oil prices high and fears of energy-fueled inflation largely in play.