China's aggregate financing and money supply expand in January
China's aggregate financing to the real economy increased 8.2 percent year on year to RMB449.11 trillion at end-January 2026. Broad money supply (M2) also rose by 9 percent, according to preliminary statistics from the People's Bank of China.
AFRE growth driven by government bonds
Outstanding aggregate financing to the real economy (AFRE) reached RMB449.11 trillion at end-January 2026, marking an 8.2 percent year-on-year increase.
Government bonds were a significant driver, growing 17.3 percent year on year to RMB95.9 trillion and accounting for 21.4 percent of total AFRE.
RMB loans to the real economy increased 6.1 percent to RMB273.3 trillion, representing 60.9 percent of the total.
Foreign currency-denominated loans decreased 12.1 percent year on year.
In terms of monthly flow, AFRE expanded by RMB7.22 trillion in January 2026, an increase of RMB166.2 billion from the same period in 2025.
RMB loans to the real economy increased by RMB4.9 trillion, while net financing of government bonds rose by RMB976.4 billion, up RMB283.1 billion year on year.
Money supply and lending dynamics
Broad money supply (M2) reached RMB347.19 trillion at end-January, growing 9 percent year on year.
Narrow money supply (M1) expanded 4.9 percent to RMB117.97 trillion, with a net money injection of RMB519.1 billion in January.
Total RMB and foreign currency deposits increased 10.1 percent year on year to RMB344.46 trillion, with RMB deposits rising by RMB8.09 trillion in January.
Concurrently, outstanding RMB and foreign currency loans totaled RMB280.59 trillion, up 6 percent year on year.
New RMB loans in January amounted to RMB4.71 trillion.
Loans to enterprises and public institutions grew by RMB4.45 trillion, while household loans increased by RMB456.5 billion.
Robust credit fuels economic activity
The January financial statistics indicate a strong credit impulse, with aggregate financing and broad money supply expanding significantly.
This robust growth, particularly in government bonds and enterprise loans, suggests continued policy support aimed at stimulating the real economy.
While interbank rates remain low, the sustained expansion of credit is crucial for underpinning economic recovery and stability in the coming months.
Source: Financial Statistics Report (January 2026)
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