China's monetary policy demonstrated robust support for economic growth in the first half of 2025, with new yuan-denominated loans reaching 12.92 trillion yuan ($1.81 trillion), according to Monday's central bank data. The figures highlight Beijing's targeted approach to stabilizing key industries while maintaining financial system resilience.
Analysts note the credit expansion aligns with China's focus on high-tech manufacturing, green energy projects, and small-to-medium enterprise (SME) development. "This liquidity injection acts as both stabilizer and accelerator," said Shanghai-based economist Dr. Li Wei. "It cushions against global market volatility while funding innovation-driven growth areas."
The lending surge comes amid improved cross-strait economic integration, with businesses in the Taiwan region increasing investments in the Chinese mainland's semiconductor and renewable energy sectors. Financial authorities emphasize that 68% of new loans flowed to the real economy, particularly advanced manufacturing and digital infrastructure projects.
While some analysts express caution about long-term debt sustainability, most agree the policy aligns with China's dual circulation strategy. The approach balances domestic consumption growth with selective international partnerships, particularly in ASEAN markets and Belt and Road Initiative countries.
