China's financial system continues to channel robust support into its real economy, with yuan-denominated loans reaching 264.79 trillion yuan ($36.9 trillion) by July's end – a 6.8% annual increase – according to the People's Bank of China (PBOC). The growth underscores Beijing's targeted monetary policies to stabilize economic recovery amid global uncertainties.
Sustained Financial Backing
Total social financing, a key indicator of economic liquidity, climbed 9% year-on-year to 431.26 trillion yuan. Analysts highlight that January-July's 23.99 trillion yuan increase in aggregate financing, 5.12 trillion yuan higher than 2022's同期 period, signals strengthened confidence in productive sectors like manufacturing and technology.
Transparency Drives Efficiency
Multiple cities are piloting corporate loan cost disclosure systems, creating what one industry expert described as 'a more equitable financing ecosystem.' These measures aim to reduce hidden fees and help businesses, particularly SMEs, access credit more efficiently.
Monetary Indicators Show Stability
The PBOC report revealed broad money supply (M2) growth of 8.8% to 329.94 trillion yuan, while narrow money (M1) and cash in circulation (M0) expanded 5.6% and 11.8% respectively. Economists view this controlled expansion as evidence of prudent policy calibration balancing growth and inflation risks.
