Central Bank: Social financing aggregate increased by 23.99 trillion yuan in the first seven months, with M2 up 8.8% YoY in July

The financial statistics report for July released by the central bank showed that the incremental aggregate financing to the real economy in China from January to July was 23.99 trillion yuan, an increase of 5.12 trillion yuan compared to the same period last year. Specifically, RMB loans issued to the real economy increased by 12.31 trillion yuan, a decrease of 69.4 billion yuan YoY; foreign currency loans issued to the real economy, converted into RMB, decreased by 72.5 billion yuan, a decrease of 24.5 billion yuan less YoY; entrusted loans decreased by 68.9 billion yuan, an increase of 11.6 billion yuan more YoY; trust loans increased by 159.2 billion yuan, a decrease of 148 billion yuan YoY; undiscounted bank acceptance bills decreased by 219.6 billion yuan, a decrease of 124.3 billion yuan less YoY; net corporate bond financing was 1.43 trillion yuan, a decrease of 184.9 billion yuan YoY; net government bond financing was 8.9 trillion yuan, an increase of 4.88 trillion yuan YoY; and domestic equity financing by non-financial enterprises was 221.2 billion yuan, an increase of 76.7 billion yuan YoY.

In the first seven months, RMB loans increased by 12.87 trillion yuan (RMB loans increased by 12.92 trillion yuan in H1). By sector, household loans increased by 680.7 billion yuan, including a decrease of 383 billion yuan in short-term loans and an increase of 1.06 trillion yuan in medium and long-term loans; loans to enterprises (institutions) increased by 11.63 trillion yuan, including an increase of 3.75 trillion yuan in short-term loans, an increase of 6.91 trillion yuan in medium and long-term loans, and an increase of 824.7 billion yuan in bill financing; and loans to non-banking financial institutions increased by 235.7 billion yuan.

At the end of July, the balance of broad money (M2) was 329.94 trillion yuan, up 8.8% YoY. The balance of narrow money (M1) was 111.06 trillion yuan, up 5.6% YoY. The balance of currency in circulation (M0) was 13.28 trillion yuan, up 11.8% YoY. A net cash injection of 465.1 billion yuan was made in the first seven months.

Financial Statistics Report for July 2025

I. Broad Money Grew by 8.8%

At the end of July, the balance of broad money (M2) was 329.94 trillion yuan, up 8.8% YoY. The balance of narrow money (M1) was 111.06 trillion yuan, up 5.6% YoY. The balance of currency in circulation (M0) was 13.28 trillion yuan, up 11.8% YoY. A net cash injection of 465.1 billion yuan was made in the first seven months.

II. RMB Loans Increased by 12.87 Trillion Yuan in the First Seven Months

At the end of July, the balance of RMB and foreign currency loans was 272.48 trillion yuan, up 6.7% YoY. The balance of RMB loans at the month-end was 268.51 trillion yuan, up 6.9% YoY.

In the first seven months, RMB loans increased by 12.87 trillion yuan. By sector, household loans increased by 680.7 billion yuan, including a decrease of 383 billion yuan in short-term loans and an increase of 1.06 trillion yuan in medium and long-term loans; loans to enterprises (institutions) increased by 11.63 trillion yuan, including an increase of 3.75 trillion yuan in short-term loans, an increase of 6.91 trillion yuan in medium and long-term loans, and an increase of 824.7 billion yuan in bill financing; and loans to non-banking financial institutions increased by 235.7 billion yuan.

At month-end July, the outstanding balance of foreign currency loans was US$555.8 billion, down 8.1% YoY. In the first seven months, foreign currency loans increased by US$13.7 billion.

III. RMB deposits increased by RMB18.44 trillion in the first seven months

At month-end July, the outstanding balance of domestic and foreign currency deposits was RMB327.83 trillion, up 9% YoY. The outstanding balance of RMB deposits at month-end July was RMB320.67 trillion, up 8.7% YoY.

In the first seven months, RMB deposits increased by RMB18.44 trillion. Specifically, household deposits increased by RMB9.66 trillion, non-financial corporate deposits increased by RMB310.9 billion, fiscal deposits increased by RMB2.02 trillion, and deposits of non-banking financial institutions increased by RMB469 billion.

At month-end July, the outstanding balance of foreign currency deposits was US$1 trillion, up 20% YoY. In the first seven months, foreign currency deposits increased by US$148.9 billion.

IV. In July, the weighted average monthly interbank offered rate in the RMB market was 1.45%, and the weighted average monthly pledged bond repo rate was 1.46%.

In July, the total turnover of interbank RMB market transactions through interbank lending, cash bonds, and repos was RMB222.44 trillion, with a daily average turnover of RMB9.67 trillion, up 14.8% YoY. Specifically, the daily average turnover of interbank lending increased by 3.1% YoY, the daily average turnover of cash bonds increased by 2.8% YoY, and the daily average turnover of pledged repos increased by 18.6% YoY.

In July, the weighted average interbank offered rate was 1.45%, 0.01 percentage point and 0.36 percentage point lower than the previous month and the same period last year, respectively. The weighted average pledged bond repo rate was 1.46%, 0.04 percentage point and 0.36 percentage point lower than the previous month and the same period last year, respectively.

V. In July, the cross-border RMB settlement amount under current accounts was RMB1.57 trillion, and the cross-border RMB settlement amount under direct investment was RMB640 billion.

In July, the cross-border RMB settlement amount under current accounts was RMB1.57 trillion, including RMB1.15 trillion for trade in goods, RMB420 billion for trade in services and other current accounts; the cross-border RMB settlement amount under direct investment was RMB640 billion, including RMB220 billion for outward direct investment and RMB420 billion for foreign direct investment.

Report on Incremental Statistics of Social Financing Scale in July 2025

According to preliminary statistics, the cumulative incremental social financing scale in the first seven months of 2025 was RMB23.99 trillion, RMB5.12 trillion more than the same period last year. Specifically, RMB loans to the real economy increased by RMB12.31 trillion, RMB69.4 billion less YoY; foreign currency loans to the real economy, converted into RMB, decreased by RMB72.5 billion, RMB24.5 billion less YoY in reduction; entrusted loans decreased by RMB68.9 billion, RMB11.6 billion more YoY in reduction; trust loans increased by RMB159.2 billion, RMB148 billion less YoY in increase; undiscounted bank acceptance bills decreased by RMB219.6 billion, RMB124.3 billion less YoY in reduction; net corporate bond financing was RMB1.43 trillion, RMB184.9 billion less YoY; net government bond financing was RMB8.9 trillion, RMB488 billion more YoY; and domestic equity financing by non-financial enterprises was RMB221.2 billion, RMB76.7 billion more YoY.

Report on Statistical Data of Outstanding Social Financing Scale as of July 2025

Preliminary statistics show that as of month-end July 2025, the outstanding social financing scale reached 431.26 trillion yuan, up 9% YoY. Among this, the balance of RMB loans issued to the real economy was 264.79 trillion yuan, up 6.8% YoY; the balance of foreign currency loans issued to the real economy, converted into RMB, was 1.21 trillion yuan, down 23.2% YoY; the balance of entrusted loans was 11.16 trillion yuan, down 0.4% YoY; the balance of trust loans was 4.46 trillion yuan, up 5.9% YoY; the balance of undiscounted bank acceptance bills was 1.92 trillion yuan, down 10.4% YoY; the balance of corporate bonds was 33.39 trillion yuan, up 3.8% YoY; the balance of government bonds was 89.99 trillion yuan, up 21.9% YoY; and the balance of domestic stocks of non-financial enterprises was 11.94 trillion yuan, up 3.2% YoY.

From a structural perspective, as of month-end July, the balance of RMB loans issued to the real economy accounted for 61.4% of the outstanding social financing scale in the same period, 1.2 percentage points lower YoY; the balance of foreign currency loans issued to the real economy, converted into RMB, accounted for 0.3%, 0.1 percentage point lower YoY; the balance of entrusted loans accounted for 2.6%, 0.2 percentage point lower YoY; the balance of trust loans accounted for 1%, 0.1 percentage point lower YoY; the balance of undiscounted bank acceptance bills accounted for 0.4%, 0.1 percentage point lower YoY; the balance of corporate bonds accounted for 7.7%, 0.4 percentage point lower YoY; the balance of government bonds accounted for 20.9%, 2.2 percentage points higher YoY; and the balance of domestic stocks of non-financial enterprises accounted for 2.8%, 0.1 percentage point lower YoY.

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