Credit Aggregate Update
China's total stock of social financing (TSF) — the broadest measure of credit in the economy — reached 462.06 trillion yuan at end-June 2026, representing a 7.4% year-on-year increase, the People's Bank of China reported on July 15. New TSF creation in H1 totalled 20.84 trillion yuan, up from 18.97 trillion yuan in the same period of 2025.
Money Supply and Deposit Dynamics
- M2 broad money: 356.71 trillion yuan, +8.0% YoY
- New RMB loans in H1: +10.72 trillion yuan
- New RMB deposits in H1: +17.76 trillion yuan
- Deposit-loan ratio improvement: banks' funding position remains comfortable
Manufacturing Lending Surges
Structural credit allocation continues to favour real-economy sectors over property. Medium- and long-term loans to the manufacturing sector grew 29.7% year-on-year in June — 18.5 percentage points above aggregate loan growth — reflecting Beijing's directive to channel lending toward advanced and strategic industries.
Small-Business and Inclusive Finance
Inclusive-finance loans to small and micro enterprises expanded 23.8% year-on-year, 12.6 points above the aggregate, indicating that policy-backed lending mechanisms continue to reduce financing costs for the private sector.
Property Credit: Selective Support
Unlike manufacturing, credit to the property sector remains selective. The government's "white list" mechanism — which channels preferential loans to qualifying developer projects — has channelled over 1.2 trillion yuan in financing to nearly 6,000 real estate projects as of end-June. This targeted approach keeps the sector stable without reigniting speculative demand.