China aggregate financing up 7.7%, M2 up 8.6% in May

Outstanding aggregate financing to the real economy (AFRE) reached RMB458.81 trillion at end-May 2026, marking a 7.7 percent year-on-year increase.

This growth was significantly driven by government bonds, which surged by 15.1 percent year on year to RMB100.6 trillion.

Corporate bonds also contributed with an 8.4 percent increase to RMB35.69 trillion.

In contrast, outstanding RMB loans to the real economy grew at a slower pace of 5.5 percent, reaching RMB277.4 trillion.

Structurally, government bonds' share in total AFRE rose by 1.4 percentage points to 21.9 percent, while RMB loans' share decreased by 1.2 percentage points to 60.5 percent, indicating a shift in financing composition.

Broad money supply (M2) stood at RMB353.67 trillion at end-May, expanding by 8.6 percent year on year.

Narrow money supply (M1) grew by 5.5 percent to RMB114.89 trillion.

Total outstanding RMB loans increased by 5.5 percent year on year to RMB281.02 trillion.

In the first five months, new RMB loans totaled RMB9.11 trillion.

Notably, household loans decreased by RMB631.4 billion, primarily from short-term loans.

In contrast, loans to enterprises and public institutions grew robustly by RMB9.63 trillion, highlighting a divergence in credit demand.