China’s monetary policy boosts market confidence and supports real economy in H1

As of the end of June, China’s total social financing scale was 430.22 trillion yuan ($61.46 trillion), with a year-on-year growth of 8.9 percent, according to the People’s Bank of China (PBOC) on Monday.

Among this, RMB loans to the real economy stood at 265.22 trillion yuan, a 7 percent increase from a year earlier.

The total amount of new yuan-denominated loans issued reached 12.92 trillion yuan in the first half of 2025. Specifically, loans to enterprises increased by 11.57 trillion yuan, accounting for 89.5 percent of total new loans and a 6.6 percentage point-increase compared to the same period last year.

The new loans were mainly directed towards key areas such as manufacturing and infrastructure, and the financial sector has continuously provided stable funding sources for the real economy, said Yan Xiandong, director of the Statistics and Analysis Department at PBOC.

Monetary policy has had a relatively obvious effect in supporting the real economy in the first half of the year, said Zou Lan, deputy governor of PBOC, at a press conference on Monday.

Furthermore, from January to June, the weighted average interest rate of new corporate loans was approximately 3.3 percent, which was about 45 basis points lower than that of the same period last year, indicating a downward trend in the overall social financing cost, said Zou.

The financial data for the first half of the year shows that the package of policies proposed by the central bank has been fully implemented, said Zou. These policies have played a positive role in boosting market confidence and stabilizing expectations, and have continuously created a favorable monetary and financial environment for promoting economic recovery and improvement, Zou added.

Regarding future deployments, Zou stated that the PBOC will continue to adhere to a moderately loose monetary policy, ensure the effective implementation of all monetary policy measures introduced, and enhance the quality and efficiency of financial services for the real economy. In terms of improving the monetary policy framework, the central bank will further establish a market-oriented interest rate regulation mechanism to better serve high-quality development.