Core Viewpoint - The financial data for the first half of 2025 indicates a reasonable growth in social financing and broad money supply (M2), supporting the real economy effectively. The People's Bank of China (PBOC) emphasizes the positive impact of monetary policy on the economy [1][4][9]. Financial Data Summary - As of June 2025, the social financing scale increased by 8.9% year-on-year, with a total of 430.22 trillion yuan, marking a 22.83 trillion yuan increase in the first half of the year, which is 4.74 trillion yuan more than the previous year [5][6]. - The broad money supply (M2) reached 330.29 trillion yuan, growing by 8.3% year-on-year, with a notable increase in government bond issuance contributing to this growth [4][6]. - The narrow money supply (M1) was 113.95 trillion yuan, up 4.6% year-on-year, reflecting a recovery in corporate deposits [4][5]. Credit Growth and Structure - The total balance of RMB loans was 268.56 trillion yuan, with a year-on-year growth of 7.1%, and new loans in June amounted to 2.24 trillion yuan [7][8]. - Corporate loans accounted for 89.5% of the new loans, with significant increases in both short-term and medium-to-long-term loans, indicating a stable funding source for the real economy [7][8]. - The increase in medium-to-long-term loans for enterprises in June ended a four-month decline, driven by various supportive financial measures [8]. Policy Implementation and Outlook - The PBOC's monetary policy has been characterized as moderately loose, with a focus on maintaining liquidity and supporting the real economy [9][10]. - The average interest rate for new corporate loans was approximately 3.3%, down about 45 basis points from the previous year, indicating a favorable borrowing environment [9][10]. - The PBOC plans to continue implementing a moderately loose monetary policy, with expectations for further interest rate cuts and increased government bond issuance in the second half of the year [10][11].

Monetary Supply - As of the end of June, the broad money supply (M2) reached 330.29 trillion yuan, reflecting a year-on-year growth of 8.3% [1] - The narrow money supply (M1) stood at 113.95 trillion yuan, with a year-on-year increase of 4.6%, marking the highest growth since May 2023 [1] - The net cash injection in the first half of the year amounted to 363.3 billion yuan, indicating a stable liquidity environment [1] Credit Growth - In June, new RMB loans totaled 2.24 trillion yuan, significantly increasing by 1.62 trillion yuan month-on-month and 110 billion yuan year-on-year, stabilizing the loan balance growth rate at 7.1% [2] - For the first half of the year, RMB loans increased by 12.92 trillion yuan, with corporate loans showing a recovery in growth [2] - The increase in corporate short-term loans by 4.9 billion yuan and the end of a four-month decline in medium to long-term loans indicate an improvement in credit structure [2] Social Financing - In June, new social financing (社融) reached 4.20 trillion yuan, with a month-on-month increase of 1.91 trillion yuan and a year-on-year increase of 900.8 billion yuan, pushing the social financing stock growth rate to 8.9% [3] - The growth in social financing was primarily driven by government bond financing, which increased by 503.2 billion yuan year-on-year [3] - The continuous year-on-year increase in social financing for seven consecutive months reflects the ongoing support of financial policies for the real economy, with expectations for further growth in July [3]