In the January-July period this year, China’s social financing amounted to RMB 18.87 trillion ($2.6 trillion), decreasing by RMB 3.22 trillion ($0.45 trillion) compared to the same period of last year, according to the People’s Bank of China (PBOC). In the first seven months this year, new Chinese currency loans totaled RMB 13.53 trillion ($1.9 trillion).
Since the beginning of the current year, official policy support for issuance of corporate bonds has increased, and so enterprises in China have been more willing to issue bonds, leading to a year-on-year rise in bond financing. Meanwhile, the issuance of special bonds has accelerated significantly since May this year, pushing up the issuance of local government bonds, resulting in a shift from negative to positive in the cumulative net financing growth of government bonds in July.