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China’s aggregate financial volume sees reasonable growth in August: central bank

China

China

China

China’s aggregate financial volume sees reasonable growth in August: central bank

2026-09-15 15:06 Last Updated At:18:23

China's outstanding aggregate financing to the real economy stood at 464.8 trillion yuan (about 69.26 trillion U.S. dollars) at the end of August, maintaining a reasonable growth at 7.2 percent year on year, central bank data showed on Monday.

M2, a broad measure of money supply that covers cash in circulation and all deposits, had increased by 7.5 percent year on year to 356.81 trillion yuan by the end of last month, according to the People's Bank of China.

China's outstanding yuan loans stood at 282.35 trillion yuan at the end of August, up 4.9 percent year on year.

"The growth rates matched the targets for economic growth and the overall price level. China's aggregate financial volume is growing at a reasonable pace, and social financing conditions have remained relatively loose, creating a favorable monetary and financial environment for steady economic growth and high-quality development," said Dong Ximiao, chief economist at Merchants Union Consumer Finance.

Zhang Jiqiang, head of Huatai Research, noted that the combined share of bond and equity financing in the increment of social financing clearly exceeded the share of loans in the first eight months of the year, nearly 20 percentage points higher than that in the same period five years ago.

This means more diverse ways in which finance supports the real economy, thus enabling businesses to make lower-cost and more sustainable funding plans, Zhang said.

Loan interest rates remained at historically low levels in August, with the weighted average interest rate on newly issued business loans slightly below 3 percent, some 0.2 percentage points lower than that in the same period last year.

The central bank said in its latest monetary policy report that it will continue to implement a moderately loose monetary policy in the second half of 2026, strengthen counter-cyclical adjustment, and take solid steps to promote sustained economic development.

It will also maintain ample liquidity, guide financial institutions to enhance the balance of credit supply, and align the growth of social financing and money supply with expected targets for economic growth and overall price levels.

"Social financing costs were kept at a low level in August, and liquidity supply was ample, reflecting the orientation of a moderately loose monetary policy. The 15th Five-Year Plan (2026-2030) on building China into a financial powerhouse has been officially issued. It is expected that future macroeconomic and financial policies will further strengthen counter-cyclical adjustment, with intensifying efforts to boost domestic consumption and optimize supply," said Wen Bin, chief economist at China Minsheng Bank.

China’s aggregate financial volume sees reasonable growth in August: central bank

China’s aggregate financial volume sees reasonable growth in August: central bank

A super El Nino event officially formed in September 2026, monitoring data from China's National Climate Center showed on Friday.

Zhao Junhu, chief forecaster at the center, said that the equatorial central and eastern Pacific entered an El Nino state in May this year, with sea surface temperatures in the key monitoring region rising rapidly and continuously from May to September.

The three-month running mean of the sea surface temperature (SST) index in the monitoring region has remained above 0.5 degrees Celsius for five consecutive months. The index exceeded 2.5 degrees Celsius for the July-September period, meeting the threshold for a super El Nino event.

The event is classified as an eastern Pacific-type El Nino, in which the warmest sea surface temperatures are concentrated in the equatorial eastern Pacific.

Monitoring data showed that sea surface temperatures across most of the equatorial Pacific in September were above average of the same period, with temperatures in the warm pool of the eastern Pacific exceeding the climatological average by more than 3 degrees Celsius.

The SST index for the monitoring region reached 2.94 degrees Celsius in September, up 0.35 degrees Celsius from August. The average index for the July-September period stood at 2.54 degrees Celsius.

Based on a combination of domestic and international dynamical climate models and statistical forecasting methods, the center expects sea surface temperatures in the equatorial central and eastern Pacific to continue rising over the next three months, peaking in late autumn or early winter, Zhao said.

The event is expected to become the strongest El Nino on record since systematic monitoring began, he added.

Super El Nino event formed in September: China's National Climate Center

Super El Nino event formed in September: China's National Climate Center

Super El Nino event formed in September: China's National Climate Center

Super El Nino event formed in September: China's National Climate Center

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