China social financing grows 27.46 trillion yuan in first three quarters

China’s social financing growth reached 27.46 trillion yuan during the first three quarters of the year, according to data from the People’s Bank of China. This represents a structural shift in the domestic financial environment, as bond and equity financing accounted for nearly half (49.48%) of all new social financing additions, outpacing traditional bank loans.

Key metrics from the reporting period include a broad money supply (M2) of 359.63 trillion yuan, a 7.2% increase year-on-year. Corporate net bond financing rose to 2.75 trillion yuan, while government bond net financing reached 10.3 trillion yuan.

While enterprise lending remains a primary driver, residential mortgage rates have trended downward, with newly issued personal housing loans averaging approximately 3.1%. Analysts note that M2 growth remains higher than nominal GDP growth, indicating a supportive monetary policy stance, even as M1 growth slowed due to real estate market adjustments and shifts in investment and consumption momentum.