Asia Private Credit Funding Hits Eight-Year Low on China Slump

Asia’s private credit market faces diverse challenges in 2025 after fundraising dropped to an eight-year low and concerns over China’s ailing growth hit sentiment.

Fundraising of Asia Pacific-focused private debt funds fell 34% to $5.4 billion in 2024 from the year-earlier period, the lowest tally since 2016, according to Preqin data. Capital deployment in the region dipped 67% to $4.6 billion last year, the data show.

Although China still accounts for a sizable share of Asia’s total — taking about a fifth, or $1 billion, of regional capital deployed in 2024 — it is no longer a huge driver ...