China issued 10.68 trillion yuan (approximately 1.5 trillion U.S. dollars) in new yuan-denominated loans from January to May 2025, according to central bank data released on Friday. In May, yuan loans maintained steady growth, with the interest rates at historically low levels, according to the People's Bank of China.
The average interest rate on newly issued corporate loans stood at about 3.2 percent in May, down 50 basis points from a year earlier, while the average interest rate on newly issued mortgage loans was about 3.1 percent, down 55 basis points from a year earlier.
"In May, the central bank lowered policy rates, and the loan prime rate (LPR), a market-based benchmark lending rate, went down subsequently. Many businesses found the interest rates more favorable, so their fund withdrawal intention increased significantly," said Dong Ximiao, chief researcher of Merchants Union Consumer Finance Company.
Meanwhile, as local real estate markets across China regain vitality, mortgage loans also increased in May, data from commercial banks showed.
Thanks to the consumer goods trade-in program, which encourages consumers to trade in old goods for new ones with subsidies or rebates, the sales of durable goods continued to increase rapidly in May, and the growth of short-term loans that support consumption also gained momentum.
China's financial aggregates are expected to remain in steady rise in the near future, according to Dong.
"Based on previous experiences, June is a month with relatively more economic activities and thus higher financing demands. The existing proactive fiscal policies will continue to produce effect. The package of financial policy measures announced by the financial regulatory authorities in early May has effectively boosted market confidence, which, along with the constantly proven resilience of the Chinese economy, provide a solid fundamental support for the appropriate growth of financial aggregates," Dong said.
China issues over 10 trillion yuan in new loans during Jan-May period
Politicians and commentators from around the world have warned that recent moves by the Japanese government to revise the country's constitution and ease restrictions on arms exports could undermine Japan's post-war pacifist stance and destabilize regional peace.
The Japanese government on Tuesday officially revised its Three Principles on Transfer of Defense Equipment and Technology and implementation guidelines to allow overseas sales of weapons, including those with lethal capabilities, despite public opposition.
U.S. political commentator Tim Shorrock said the move signals a dangerous shift toward hardline conservatism, rooted in a persistent reluctance to fully acknowledge Japan's wartime actions.
"I think it's actually very dangerous for regional security because now Japan is becoming led by some very, very conservative people who often deny Japan's aggressive role in World War II, deny its crimes against comfort women during World War II, deny its cruel colonization of Korea, the Korean Peninsula, deny its terrible crimes in China from the thirties until the end of World War II," he said.
Shorrock said Japan's moves to revise its pacifist Constitution mark a sharp departure from the public support Article 9 enjoyed in the post-war era.
"In that post-war period, vast majority of Japanese citizens supported Article 9, supported the ban on Japan becoming a militarized nation, and a ban on making war ever again. And bit by bit, the LDP has chipped away at this Constitution, and now Prime Minister Takaichi wants to do away with this -- the Article 9 -- and they are pushing very hard. I think that's a real repudiation of the peace," he said.
Yeidckol Polevnsky, chair of the Asia-Pacific Committee of the Mexican Senate, said Japan appears to be moving away from its long-standing image as a peace-oriented country, despite public unease.
"I think that in Japan's case, there is still a very old debt owed to China. After World War II, Germany apologized to the Jewish people and paid compensation for the damage it caused. But Japan has even been attempting to hide this. I see a significant shift happening in Japan, because for many years, Japan tried to reach out to the world to erase its image from World War II as a warmongering country. But today I find the situation in Japan truly distressing and very sad. I believe that even the Japanese people themselves do not agree with what is happening," she said.
Int'l observers warn Japan is drifting away from post-war pacifist stance
