PBOC Unveils Trillion-Yuan Relending and Rate Tools in H1 2026; Aggregate Financing Stock Tops 460 Trillion
In H1 2026, the PBOC introduced a RMB1 trillion private-enterprise relending facility and expanded the sci-tech innovation and technological transformation relending quota to RMB1.2 trillion, adding new overnight reverse repo operations. By end‐June, aggregate social financing stock exceeded RMB460 trillion, M2 rose 8% to RMB356.71 trillion, and outstanding RMB loans gained 5.2%. The weighted average new corporate loan rate fell to around 3%, down 20 basis points year‐on‐year. The yuan appreciated 4.7% against a currency basket, cross‐border receipts and payments hit a record USD9.2 trillion, and foreign investment inflows continued. External debt safety ratios remained comfortably below international warning lines.
Since the start of 2026, the People's Bank of China has launched a series of policy measures, including a standalone RMB1 trillion relending facility for private enterprises, expanding the relending quota for sci-tech innovation and technological transformation to RMB1.2 trillion, merging the sci-tech innovation and private enterprise bond risk‐sharing instrument, and adding overnight reverse repo operations. Structural monetary policy tools now cover areas related to the five major financial articles.
At end‐June, the stock of aggregate social financing exceeded RMB460 trillion. Broad money M2 stood at RMB356.71 trillion, up 8% year‐on‐year. Outstanding RMB loans reached RMB282.63 trillion, a rise of 5.2%. In the first half, new RMB loans to the real economy increased by RMB10.76 trillion. Loans to enterprises and public institutions rose by RMB11.13 trillion, of which medium and long-term loans increased by RMB5.55 trillion, while household operating loans grew by RMB689 billion.
At end‐June, the balance of inclusive loans to small and micro enterprises was 8.3% higher year‐on‐year. Outstanding medium and long-term industrial loans rose by 5.9%, and medium and long-term loans to the services sector excluding real estate increased by 9.2%—all outpacing overall loan growth. Credit is being channelled more towards sci‐tech innovation, green sectors, private enterprises and other priority areas and weak links.
The weighted average interest rate on new corporate loans in June was around 3%, about 20 basis points lower than in the same period of 2025. New personal housing loans carried an average rate of about 3.1%. The outstanding relending to private enterprises exceeded RMB760 billion, while sci‐tech innovation and technological transformation loans reached RMB1.5 trillion, enabling 21,000 technology‐based small and medium‐sized enterprises to obtain first‐time loans. Outstanding loans for technological transformation and equipment renewal stood at RMB1.3 trillion, supporting a cumulative 8,250 key‐sector equipment renewal projects. Pilot work on the explicit disclosure of comprehensive financing costs began in September 2024, with banks using a standardised "loan clarity sheet" to uniformly disclose all financing charges.
In the first half, the 10‐year government bond yield traded around 1.73%. At end‐June, the renminbi had appreciated by 4.7% against a basket of currencies compared with end‐2025, and by 3% against the US dollar. Bank‐intermediated cross‐border receipts and payments totalled USD9.2 trillion, and foreign exchange settlement and sales reached USD2.9 trillion, both record highs for a first half, rising 21% and 24% year‐on‐year respectively. Turnover in the onshore RMB foreign exchange market amounted to USD22.1 trillion, an increase of 5%.
In the first five months, net foreign inflows from various types of investment into China were approximately USD160 billion, with net foreign equity investment inflows exceeding USD50 billion. Inflows into high‐tech services and high‐tech manufacturing jumped 61% year‐on‐year, accounting for 36% of total capital inflows. Chinese residents’ new outward investment exceeded USD300 billion in the first five months. At end‐March, China’s external assets totalled roughly USD12 trillion, with net external assets of over USD4 trillion, the second largest globally.
External debt safety indicators show the debt‐to‐GDP ratio at 11.9%, the debt‐to‐exports ratio at 56.3%, the debt‐service ratio at 6.2%, and the ratio of short‐term external debt to foreign exchange reserves at 39.2%—all below the respective international warning lines of 20%, 100%, 20% and 100%.