China's aggregate financing up 7.9 percent in Q1 2026

Outstanding aggregate financing to the real economy (AFRE) reached RMB456.46 trillion at end-March 2026, marking a 7.9 percent year-on-year increase.

This growth was primarily driven by a 15.9 percent rise in outstanding government bonds to RMB98.47 trillion and a 7.9 percent increase in corporate bonds to RMB35.16 trillion.

RMB loans to the real economy, which constitute 60.7 percent of total AFRE, grew by 5.8 percent year on year to RMB277.3 trillion.

In terms of flow, AFRE increased by RMB14.83 trillion in the first quarter of 2026, although this was RMB354.5 billion less than the increase in the same period of 2025.

This indicates a sustained, albeit slightly decelerated, expansion of financial support to the real economy.

China's broad money supply (M2) expanded by 8.5 percent year on year, reaching RMB353.86 trillion by end-March.

Narrow money supply (M1) also saw a 5.1 percent increase, while currency in circulation (M0) grew significantly by 12.5 percent.

This robust money supply growth was accompanied by a substantial increase in RMB deposits, which rose by RMB13.73 trillion in the first quarter.

Household deposits contributed RMB7.68 trillion to this increase.

Total outstanding RMB loans grew by 5.7 percent year on year to RMB280.51 trillion, with new RMB loans totaling RMB8.6 trillion in Q1. Loans to enterprises and public institutions were the primary driver, increasing by RMB8.6 trillion, indicating continued credit support for businesses.