China's financial aggregates grow at reasonable pace in Jan-June

China's financial aggregates grew at a reasonable pace and the financial system provided stable support for the real economy in the first half of this year, according to the latest official data released by the central bank on Wednesday.

People's Bank of China (PBOC) data show that at the end of June, the balance of the broad money supply (M2) grew by 8 percent year over year, continuing to exceed that of nominal GDP (gross domestic product).

In the first half of the year, new Chinese yuan loans totaled 10.72 trillion yuan (about 1.58 trillion U.S. dollars) and new bond financing amounted to 8.51 trillion yuan (about 1.26 trillion U.S. dollars). The share of bond financing increased and the financial system's support for the real economy remained solid in the first six months.

While aggregate financing volume increased, more credit funds flowed into key areas and weak links such as sci-tech innovation and small and micro enterprises in the first half of the year.

As of the end of June, the outstanding balance of inclusive loans to small and micro enterprises grew by 8.3 percent year on year, and the outstanding balance of medium- and long-term loans to the industrial sector rose by 5.9 percent -- both exceeding the growth rate of total loans.

The overall social financing cost was at a historically low level in the six-month period.

In June, the average interest rate on newly issued corporate loans was around 3.0 percent, about 20 basis points lower than the same period of the previous year. The interest rate for newly issued personal housing loans was about 3.1 percent, basically on a par with that of the same period last year.

The Chinese exchange rate remained stable with an upward trend in the first half of the year. The Chinese yuan had appreciated by 4.7 percent against a basket of foreign currencies by the end of June and by 3 percent against the U.S. dollar compared to the end of last year. "Overall, major macro financial indicators reflecting the operation of the financial sector fully demonstrate the status of the appropriately accommodative monetary policy. The social financing conditions are relatively accommodative, while the quality and efficiency of financial services for the real economy are constantly improving," said Zou Lan, deputy governor of PBOC.

China's financial aggregates grow at reasonable pace in Jan-June

A new round of high temperatures has gripped large parts of northwest China's Xinjiang Uygur Autonomous Region since Monday, with local observatory forecasting scorching days through next week, and possibly longer in southern and eastern areas.

According to weather authorities, most plain areas in Xinjiang will see temperatures above 35 degrees Celsius over the next week.

Parts of the northern slope of the Tianshan Mountains, the southern Xinjiang basin or Tarim Basin, and eastern Xinjiang will experience temperatures exceeding 40 degrees Celsius. Some areas in Bayingolin Prefecture, Turpan and Hami could see temperatures soar above 45 degrees Celsius, with temperatures in Turpan likely to exceed 50 degrees.

"The first factor is the circulation pattern. Before July 14, the Iranian subtropical high and the Western Pacific subtropical high remained separate. On July 15, the two systems will connect, triggering the high temperatures in Xinjiang. Especially after July 15, the Iranian high expanded notably eastward, essentially creating a 'heat dome', a cap of high pressure that traps heat over the region. The second factor is the predominance of clear and sunny weather across most areas, which allowed direct sunlight to reach the ground and drive up surface temperatures significantly. The third factor is Xinjiang's topography (three mountain ranges sandwiching two basins) which hinders the dissipation of heat and helps sustain the prolonged heatwave," said Li Ruqi, chief forecaster of Xinjiang Meteorological Observatory.

Local meteorological authorities have issued high‑temperature warnings in response to the prolonged heat.

Several cities have stepped up road‑watering operations to lower ground temperatures. Water resources and disease control departments have also released risk alerts, urging authorities and residents to guard against mountain torrents from snowmelt and to take precautions to protect personal health.

Heatwave grips Xinjiang, with temperatures expected to hit 35-50 degrees Celsius