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H1 Financial Data Released: Credit 'Slows with Quality Improvement,' Bond and Equity Financing Share Rises

H1 Financial Data Released: Credit 'Slows with Quality Improvement,' Bond and Equity Financing Share Rises

The People's Bank of China released financial statistics for H1 2026 on July 15. As of end-June, broad money supply M2 grew 8.0% year-on-year, and total social financing stock grew 7.4%, with both indicators continuing to exceed nominal GDP growth.

In H1, total social financing increased by 20.84 trillion yuan. Net financing from non-financial enterprise bonds was 2.07 trillion yuan, 916.7 billion more year-on-year; equity financing was 293.3 billion yuan, 122.4 billion more. Combined, they represented 11.3% of total social financing, up 5.6 percentage points from a year earlier.

As of end-June, outstanding RMB loans reached 282.63 trillion yuan, up 5.2% year-on-year. Xie Guangqi, head of the PBOC Monetary Policy Department, noted that credit 'slowing with quality improvement' may become one of the new normals in macroeconomic operations.

Comprehensive financing costs remain at historically low levels. The weighted average rate for new corporate loans in June was approximately 3%, about 20 basis points lower than a year earlier. PBOC Deputy Governor Zou Lan stated that the share of new loans in the 'five major financial articles' sectors has risen to over 70%. As of end-June, inclusive micro and small enterprise loans grew 8.3% year-on-year, and medium-to-long-term industrial loans grew 5.9%.

In the second half, the PBOC will enhance the forward-looking nature, flexibility, and specificity of monetary policy, strengthening counter-cyclical and cross-cyclical adjustment.

Industry

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