Aggregate financing grows 7.2 percent to 464.8 trillion yuan
China's outstanding aggregate financing to the real economy reached 464.8 trillion yuan at the end of August 2026, rising 7.2 percent year-on-year. Broad money supply increased 7.5 percent to 356.81 trillion yuan over the same period.
Government debt and enterprise loans drive credit
Outstanding RMB loans to the real economy grew 5.0 percent year-on-year to 278.63 trillion yuan, accounting for 59.9 percent of total aggregate financing.
Government bond balances reached 103.69 trillion yuan, marking an increase of 13.5 percent and expanding their share of aggregate financing to 22.3 percent.
Corporate bonds expanded 9.7 percent to 36.71 trillion yuan.
In the first eight months of 2026, total new aggregate financing reached 23.91 trillion yuan, down 2.64 trillion yuan compared to 2025.
Over the same eight-month period, new RMB loans stood at 10.44 trillion yuan, led by enterprise borrowing of 11.26 trillion yuan, while household loans contracted by 1.03 trillion yuan.
Interbank rates ease as household deposits surge
Broad money (M2) climbed 7.5 percent to 356.81 trillion yuan, while narrow money (M1) grew 4.1 percent to 115.77 trillion yuan.
Total RMB deposits rose 7.7 percent to 347.67 trillion yuan, with household deposits increasing by 6.99 trillion yuan through August.
In the interbank market, daily turnover across lending, cash bonds and repos averaged 8.45 trillion yuan in August.
The monthly weighted average interbank lending rate fell two basis points to 1.38 percent, and the pledged repo rate dropped to 1.40 percent.
Public debt masks private hesitation
The credit figures reveal persistent reliance on sovereign issuance to offset declining household loan demand.
Abundant interbank liquidity has done little to revive private borrowing appetite.
Credit expansion remains heavily anchored in state balance sheets rather than organic economic momentum.
Source: Financial Statistics Report (August 2026)
IN: