China's aggregate financing to the real economy reached ¥23.91 trillion for the first eight months of 2026. This figure fell short of the consensus estimate of ¥24.372 trillion, resulting in a shortfall of approximately ¥460 billion.
Data from the People’s Bank of China shows a persistent trend of weakening loan demand. For the January-to-July period, new yuan loans totaled ¥10.38 trillion, which is ¥2.49 trillion lower than the same period in 2025. In July alone, new yuan loans contracted by ¥340 billion.
While private-sector borrowing has declined, state-led financing has increased. By the end of July, the total outstanding stock of RMB loans reached ¥278.57 trillion, a 5.2% year-over-year increase. The overall aggregate financing stock grew by 7.4% to ¥463.27 trillion.
The People’s Bank of China continues to implement accommodative policies, including interest rate cuts and reduced reserve requirements. Despite these measures, analysts note that credit creation remains significantly behind 2025 levels, suggesting that full-year totals will likely miss previous benchmarks.
