As of the end of July, the Chinese mainland's total social financing reached 431.26 trillion yuan, marking a 9% increase year-on-year, according to data from the People's Bank of China. This surge highlights ongoing policy support to fuel real economic growth.
Yuan-denominated loans to the real economy totaled 264.79 trillion yuan, up 6.8% from a year earlier. Industry experts note that most financing needs in the real economy are being met, with many cities piloting disclosure of comprehensive financing costs for corporate loans. These transparency measures aim to lower borrowing burdens and unlock new growth for businesses.
On the liquidity front, the broad money supply (M2) climbed 8.8% year-on-year to 329.94 trillion yuan by July, while narrow money (M1) rose 5.6% to 111.06 trillion yuan. Currency in circulation (M0) jumped 11.8% to 13.28 trillion yuan, reflecting stronger cash flows in the system.
From January to July, aggregate social financing expanded by 23.99 trillion yuan—5.12 trillion yuan more than the same period last year—underscoring deeper financial support for economic activity. For startups, SMEs and innovators, these numbers translate into greater access to capital and smoother paths for scaling up.
As global markets monitor these developments, the Chinese mainland's monetary boost is sending ripples through supply chains and investor sentiment. By enhancing transparency and channeling funds into the real economy, policymakers aim to secure sustainable growth in a rapidly evolving landscape.
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Rise in loans underscores China's monetary boost for real economy
cgtn.com
