The People's Bank of China has published data on the country's monetary indicators for the first eight months of 2026. According to Xinhua, citing the central bank, the volume of yuan loans increased by 10.44 trillion yuan over the period, equivalent to about 1.54 trillion US dollars.
According to the regulator, at the end of August the outstanding balance of yuan loans reached 282.35 trillion yuan, up 4.9 percent year on year. The broad money supply M2 rose 7.5 percent year on year to 356.81 trillion yuan. M1, which covers cash in circulation, demand deposits of corporations and households, and funds received by non-bank payment institutions, reached 115.77 trillion yuan, up 4.1 percent from a year earlier. Total financing of the real economy at the end of August stood at 464.8 trillion yuan, up 7.2 percent year on year.
Tian Xuan, dean of the Guanghua School of Management at Peking University, said that the aggregate financial volume is growing at a reasonable pace and that social financing conditions remain relatively loose.
In its latest monetary policy report, the central bank said it intends to continue pursuing a moderately loose policy in the second half of 2026, strengthen countercyclical regulation and maintain sufficient liquidity. Wang Qing, chief macro analyst at Golden Credit Rating, expects closer coordination between monetary policy and fiscal and industrial policy, as well as further expansion of structural instruments.
Source: Xinhua
