The latest financial statistics for the first half of 2026, released by the People's Bank of China, indicate continued stable growth in financial aggregates and strengthened support for the real economy. As of the end of June, the outstanding balance of aggregate financing to the real economy stood at 4,620.6 trillion yuan, a year-on-year increase of 7.4%. The broad money supply M2 balance was 3,567.1 trillion yuan, up 8% year-on-year, while outstanding RMB loans from financial institutions reached 2,826.3 trillion yuan, rising 5.2% from a year earlier.
Incremental Aggregate Financing Grows at a Reasonable Pace with Corporate Direct Financing Share Rising Significantly
Data shows that the cumulative increment of aggregate financing to the real economy in H1 2026 was 20.84 trillion yuan, representing reasonable growth and indicating that the financial system has adequately met the funding needs of the real economy.
Yan Xiandong, a spokesperson for the People's Bank of China and Director-General of the Survey and Statistics Department, stated at a recent press conference that structurally, financial institutions' credit support for the real economy remains solid. In the first half of the year, the net increase in new RMB loans issued by financial institutions to the real economy, after deducting repayments, was 10.76 trillion yuan.
"Corporate direct financing increased significantly year-on-year, with its share rising notably. In the first half, net financing from bonds issued by non-financial enterprises amounted to 2.07 trillion yuan, an increase of 916.7 billion yuan year-on-year. Equity financing for non-financial enterprises reached 293.3 billion yuan, up 122.4 billion yuan year-on-year. Together, these accounted for 11.3% of the increment in aggregate financing, 5.6 percentage points higher than the same period last year," Yan Xiandong said.
Wen Bin, Chief Economist at China Minsheng Bank, commented that as the economic structure transforms, the financing structure is also undergoing adaptive changes. Bond financing is playing an increasingly important role in broadening corporate funding sources, lowering financing costs, and supporting high-quality corporate development. Meanwhile, equity financing, with its characteristics of risk-sharing, benefit-sharing, and long-term partnership, is better suited to new growth sectors that are high-growth, R&D-intensive, and asset-light. As the financial system continues to deepen and economic transformation accelerates, direct financing will play a crucial supporting role in building a modern industrial system and achieving high-level technological self-reliance during the 15th Five-Year Plan period. China will also develop a healthier, more diversified, and complementary financing system encompassing bank loans, corporate bonds, and equity financing.
Financial Support for Real Economy Remains Solid as Credit Transitions to Quality-Driven Growth
Data indicates that by the end of June, the outstanding balance of RMB loans was 2,826.3 trillion yuan, a year-on-year increase of 5.2%.
Xie Guangqi, Director-General of the Monetary Policy Department of the People's Bank of China, noted that the growth rate of RMB loans slowed somewhat in the first half of this year, while bond financing, particularly corporate bond financing, increased significantly. This shift in financing structure may be long-term and trend-driven, reflecting the profound adjustment of China's economic structure and the transition between old and new growth drivers, as well as the dynamic adaptation of the financial system and the deepening of supply-side structural reform in finance.
"For a period going forward, monetary credit will continue shifting from extensive expansion to quality-driven development. 'Slower growth with improved quality' in loans may become one of the new norms in macroeconomic operation," Xie Guangqi stated.
He added that as China's economy shifts from high-speed growth to high-quality development, financial services to the real economy will be reflected not only in the sustained expansion of macro-financial aggregates but also in the enhancement of quality and efficiency. For instance, currently, new loans in the five key financial focus areas already account for over 70% of the total, while the corporate loan interest rate has fallen to a historically low level of around 3%, indicating that financial support for the real economy remains relatively solid.
Concurrently, the financial system's credit support for the real economy remains at a high level, with its structure continuously optimizing. Yan Xiandong pointed out that by borrower type, loans to enterprises (and institutions) constitute the main body of credit growth. In the first half, loans to enterprises (and institutions) increased by 11.13 trillion yuan, of which medium- and long-term loans rose by 5.55 trillion yuan, demonstrating that finance continues to provide stable funding sources for the real economy. Operating loans to households increased by 689 billion yuan, showing that financial institutions continue to strengthen funding support for the production and business activities of individual businesses and micro and small enterprise owners.
"Looking at the allocation structure, loans are flowing to key areas and weak links. By the end of June, the balance of inclusive loans to micro and small enterprises grew 8.3% year-on-year; the balance of medium- and long-term industrial loans grew 5.9% year-on-year; and the balance of medium- and long-term loans to the service sector excluding real estate grew 9.2% year-on-year. The growth rates of all these loan categories were higher than that of total loans during the same period," Yan Xiandong said.
Utilizing Structural Monetary Policy Tools to Continuously Enhance the Quality and Efficiency of Financial Services for the Real Economy
Since the beginning of this year, the People's Bank of China has implemented a moderately accommodative monetary policy, maintaining ample liquidity to support the economy's shift towards new and superior growth drivers and a good start to the 15th Five-Year Plan period.
Zou Lan, a spokesperson and Deputy Governor of the People's Bank of China, stated that key macro-financial indicators reflecting financial operations fully reflect the state of the moderately accommodative monetary policy. Conditions for aggregate financing are relatively accommodative, and the quality and efficiency of financial services for the real economy continue to improve.
Zou Lan indicated that in the second half of the year, the central bank will earnestly implement the central authorities' directives, enhance the forward-looking, flexible, and targeted nature of monetary policy. Based on domestic and international economic and financial situations and financial market operations, it will strengthen counter-cyclical and cross-cyclical adjustments to create a suitable monetary and financial environment for stable economic growth, high-quality development, and smooth financial market operations.
Regarding quantity-based tools, Zou Lan explained, "The central bank's toolkit is very rich, including reserve requirement ratios, reverse repos, medium-term lending facilities, treasury bond buying and selling, etc. Among these, RRR cuts primarily focus on injecting long-term liquidity, while reverse repos and MLFs mainly provide short- and medium-term liquidity. In practice, we will appropriately select and reasonably combine these tools based on liquidity management needs to maintain ample liquidity and guide the growth of aggregate financing and money supply to match the expected targets for economic growth and the general price level."
"On the interest rate front, since the beginning of this year, China's economy has continued its overall stable, new, and superior development trend, demonstrating strong resilience and vitality. However, the foundation for sustained stable and improving economic performance needs further consolidation. Looking at prices, influenced by external input factors, the PPI rebound has been relatively pronounced, but CPI increases have been relatively mild. Going forward, we will guide and manage interest rate levels based on macroeconomic performance, price trends, and the needs of macro-control, promoting the low-level operation of overall social financing costs," Zou Lan said.
Simultaneously, Zou Lan stated that the central bank will continue to leverage the role of other monetary and financial policies, including structural monetary policy tools. On one hand, it will implement the series of structural monetary policy measures introduced at the beginning of the year, continuously improve tool design and management, and, if necessary, increase tool quotas and optimize policy elements based on market demand to intensify support for key areas such as expanding domestic demand, technological innovation, and micro, small, and medium-sized enterprises. On the other hand, it will guide financial institutions to scientifically assess risks, implement differentiated policies with support and control, and improve fund usage efficiency.