New bank lending in China rose faster than expected in December, suggesting that government stimulus measures are beginning to revive demand for credit after a prolonged slowdown caused by a property market downturn and weak domestic consumption.

Chinese banks extended 910 billion yuan ($130.54 billion) in new loans in December, up from 390 billion yuan in November and above the 800 billion yuan forecast by 19 analysts polled by Reuters, according to Reuters calculations based on data released by the People’s Bank of China on Thursday.

The figure, however, was slightly below the 990 billion yuan recorded in December last year.

Total new yuan loans for 2025 reached 16.27 trillion yuan, the lowest annual level since 2018 and down from 18.09 trillion yuan in 2024, underscoring persistently weak borrowing appetite across the economy.

China reported a record trade surplus of nearly $1.2 trillion in 2025, as exporters stepped up efforts to diversify into non-U.S. markets amid continued trade pressure from the administration of U.S. President Donald Trump.

But policymakers have struggled to offset the drag from a deep property slump and to stimulate household consumption, which remains subdued despite repeated rounds of fiscal and monetary support.