China’s financial system continued to provide support for economic growth in the first five months of 2026, with new yuan-denominated loans increasing by 9.11 trillion yuan (approximately US$1.34 trillion), according to data released by the People’s Bank of China (PBOC).
By the end of May, the outstanding balance of yuan loans reached 281.02 trillion yuan, representing a 5.5 percent year-on-year increase.
Broad money supply (M2), which includes cash in circulation and all deposits, rose 8.6 percent year-on-year to 353.67 trillion yuan. Meanwhile, M1, which measures cash in circulation, demand deposits and reserves held by non-bank payment institutions, climbed 5.5 percent to 114.89 trillion yuan.
The steady expansion of credit and money supply reflects continued policy support for economic activity, investment and consumption as China advances its high-quality development agenda.
Analysts believe the growth in lending and liquidity will help stabilize market expectations, support business financing needs and provide momentum for economic recovery throughout the year.
