Broad Money Growth Accelerates
China's broad money supply (M2) reached 355.51 trillion yuan at the end of July 2026, representing a 7.7% year-on-year increase, according to data released by the People's Bank of China on August 14. The growth rate marks an acceleration from previous months, signaling that monetary conditions remain sufficiently loose to support economic recovery.
Social Financing Expands Steadily
The stock of total social financing stood at 463.27 trillion yuan at end-July, up 7.4% year-on-year. Both M2 and social financing growth rates exceeded the nominal GDP growth rate, indicating that financial conditions remain supportive of the broader economy. The PBOC noted that social financing conditions are maintained in a "relatively loose state" consistent with economic growth and price-level targets.
Credit Structure Shifts
| Indicator | July 2026 | YoY Growth |
|---|---|---|
| M2 balance | 355.51 trillion yuan | +7.7% |
| Social financing stock | 463.27 trillion yuan | +7.4% |
| RMB loans balance | 282.29 trillion yuan | +5.1% |
Policy Implications
The data suggests that the central bank's moderately loose monetary policy stance continues to provide adequate liquidity to the real economy. With inflation remaining contained, the PBOC retains room for further easing if growth momentum weakens in the second half of 2026.