According to a UOB Kay Hian report, China’s banking sector presented a mixed picture in September. While the value of new loans rebounded significantly to $180.6 billion (RMB1.29 trillion)—more than double the August figure—overall loan growth continues to slow, reaching the weakest year-on-year pace so far this year at 6.6%. The rebound in new lending fell slightly short of market expectations. Banks are showing greater short-term liquidity, but they remain cautious about extending long-term credit due to weak demand from corporations. Furthermore, although Total Social Financing (TSF) increased beyond expectations to $494.2 billion (RMB3.53 trillion), the outstanding TSF growth also continued to ease, pointing to ongoing softness in private-sector credit demand. The report suggests that China may need to implement additional fiscal measures to effectively boost domestic demand and support sustained credit expansion.