Record Credit Expansion in H1
China's banking system extended 10.72 trillion yuan in new yuan loans in the first half of 2026, a record for any H1 period, according to the People's Bank of China (PBOC) monetary policy report released July 15. Total social financing stock reached 462.06 trillion yuan, up 7.4% year-on-year, while the broad money supply M2 stood at 356.71 trillion yuan, expanding 8.0% year-on-year.
Key Aggregates at End-June 2026
| Indicator | Stock / H1 Flow | YoY Change |
|---|---|---|
| Total social financing | 462.06 trillion yuan | +7.4% |
| M2 (broad money) | 356.71 trillion yuan | +8.0% |
| H1 new yuan loans | 10.72 trillion yuan | Record H1 |
| H1 RMB deposits | 17.76 trillion yuan added | — |
| H1 incremental TSF | 20.84 trillion yuan | — |
Where the Credit Is Flowing
Structural targeting is clear: medium- and long-term loans to manufacturing surged 29.7% year-on-year, 18.5 percentage points above the aggregate loan growth rate. Inclusive-finance small-business loans rose 23.8% year-on-year, 12.6 points above the total. Property-related credit, by contrast, expanded at a fraction of overall growth — reflecting deliberate policy restraint on speculative mortgage demand.
Policy Signal
With CPI anchored near 1.0%, the PBOC retains ample room to keep liquidity ample through H2 2026. The composition of credit — weighted heavily toward advanced manufacturing, SMEs and green industries — is the story: China is using cheap credit as an industrial policy tool, not just a macroeconomic stabiliser. Sustained loan growth in these sectors supports the 15th Five-Year Plan's innovation-led agenda.