The State Council Information Office held a press conference on July 15 to present the monetary policy implementation and financial statistical data for the first half of 2026.

Zou Lan, spokesperson and Vice Governor of the People's Bank of China, stated that the effectiveness of monetary policy in supporting the real economy is quite evident based on the first-half financial data.

Firstly, financial aggregates have grown reasonably. By the end of June, the broad money supply (M2) grew by 8% year-on-year, and the stock of aggregate financing to the real economy (AFRE) increased by 7.4% year-on-year. The growth rates of both indicators continued to outpace the growth of nominal GDP. In the first half of the year, new yuan-denominated loans reached 10.72 trillion yuan, while bond financing increased by 8.51 trillion yuan. The rising proportion of bond financing indicates a stable financial system supporting the real economy.

Secondly, the overall financing cost in society remains at historically low levels. In June, the weighted average interest rate for newly issued corporate loans was approximately 3%, about 20 basis points lower than the same period last year. The interest rate for newly issued personal housing loans was around 3.1%, largely unchanged from a year earlier.

Thirdly, the credit structure continues to improve. By the end of June, outstanding loans to small and micro businesses inclusive grew by 8.3% year-on-year, medium- and long-term industrial loans increased by 5.9% year-on-year, and medium- and long-term loans to the service sector excluding real estate grew by 9.2% year-on-year. All these growth rates were higher than the overall loan growth rate.

Fourthly, financial markets are operating smoothly, with the capital market remaining active and the bond market stable. Currently, the yield on the 10-year government bond is around 1.73%, and the RMB exchange rate is stable with an appreciating trend. By the end of June, the RMB had appreciated by 4.7% against a basket of currencies compared to the end of last year and by 3% against the US dollar.

"In the next stage, the People's Bank of China will continue to implement an appropriately accommodative monetary policy," Zou Lan stated. "We will carefully calibrate the intensity, pace, and timing of monetary policy implementation based on domestic and international economic and financial conditions and market operations. We will enhance counter-cyclical and cross-cyclical adjustments, focus on expanding domestic demand, optimizing supply, strengthening the internal drivers of economic development, continuously consolidate and expand the positive momentum of stable economic performance, and effectively support a good start for the 15th Five-Year Plan period."