China's aggregate social financing reached CNY 22.25 trillion in the first seven months of the year, slightly above market expectations of CNY 21.925 trillion, but new RMB loans totaled CNY 10.38 trillion, below forecasts. Reuters calculations based on People's Bank of China data showed July new yuan loans contracted by CNY 340 billion, versus expectations for a CNY 45 billion increase, highlighting weak credit demand. Household borrowing fell sharply and corporate lending also turned negative in July, while outstanding yuan loan growth slowed to a record-low 5.1% year-on-year. Government bond issuance remained the main support for broader financing, even as M2 growth of 7.7% and subdued private-sector borrowing pointed to an uneven domestic demand recovery.