China Q1 Aggregate Finance Hits 14.83 Trillion Yuan: M2 +8.5%, What It Signals for CNY (Apr 13)

I. Aggregate Financing Stock Up 7.9% Year-on-Year

According to preliminary statistics, the stock of aggregate financing to the real economy reached 456.46 trillion yuan by the end of March 2026, up 7.9% year-on-year. Among them, the outstanding balance of RMB loans to the real economy was 277.3 trillion yuan, up 5.8% year-on-year; the outstanding balance of foreign currency loans to the real economy converted to RMB was 1.12 trillion yuan, down 5.3% year-on-year; the outstanding balance of entrusted loans was 11.25 trillion yuan, up 0.2% year-on-year; the outstanding balance of trust loans was 4.68 trillion yuan, up 7.5% year-on-year; the outstanding balance of undiscounted bank acceptance bills was 2.73 trillion yuan, up 2.3% year-on-year; the outstanding balance of corporate bonds was 35.16 trillion yuan, up 7.9% year-on-year; the outstanding balance of government bonds was 98.47 trillion yuan, up 15.9% year-on-year; and the outstanding balance of domestic stocks of non-financial enterprises was 12.31 trillion yuan, up 4.2% year-on-year.

II. Q1 Aggregate Financing Up 14.83 Trillion Yuan

According to preliminary statistics, the aggregate financing to the real economy in Q1 2026 totaled 14.83 trillion yuan, 354.5 billion yuan less than the same period last year. Among them, RMB loans to the real economy increased by 8.9 trillion yuan, 796 billion yuan less year-on-year; foreign currency loans to the real economy converted to RMB increased by 85.2 billion yuan, 181.9 billion yuan more year-on-year; net financing of corporate bonds was 1.05 trillion yuan, 521.3 billion yuan more year-on-year; net financing of government bonds was 3.54 trillion yuan, 330.3 billion yuan less year-on-year; and domestic stock financing of non-financial enterprises was 117.3 billion yuan, 21.1 billion yuan more year-on-year.

III. Broad Money M2 Up 8.5%

By the end of March, the broad money (M2) balance was 353.86 trillion yuan, up 8.5% year-on-year. The narrow money (M1) balance was 119.32 trillion yuan, up 5.1% year-on-year. The currency in circulation (M0) balance was 14.71 trillion yuan, up 12.5% year-on-year. Net cash injection in Q1 was 613.5 billion yuan.

IV. RMB Deposits Up 13.73 Trillion Yuan in Q1

By the end of March, the outstanding balance of domestic and foreign currency deposits was 350.23 trillion yuan, up 8.7% year-on-year. The outstanding balance of RMB deposits was 342.41 trillion yuan, up 8.6% year-on-year.

RMB deposits increased by 13.73 trillion yuan in Q1. Among them, household deposits increased by 7.68 trillion yuan, non-financial corporate deposits increased by 2.68 trillion yuan, fiscal deposits increased by 460.6 billion yuan, and non-banking financial institutions deposits increased by 2.03 trillion yuan.

V. RMB Loans Up 8.6 Trillion Yuan in Q1

By the end of March, the outstanding balance of domestic and foreign currency loans was 284.51 trillion yuan, up 5.7% year-on-year. The outstanding balance of RMB loans was 280.51 trillion yuan, up 5.7% year-on-year.

RMB loans increased by 8.6 trillion yuan in Q1. By sector, household loans increased by 296.7 billion yuan, of which short-term loans decreased by 164 billion yuan and medium and long-term loans increased by 460.7 billion yuan; corporate loans increased by 8.6 trillion yuan, of which short-term loans increased by 4.13 trillion yuan, medium and long-term loans increased by 5.42 trillion yuan, and bill financing decreased by 1.1 trillion yuan; non-banking financial institutions loans decreased by 368 billion yuan.

VI. Interbank Lending Rate at 1.38% in March

In Q1, the interbank RMB market traded 586.73 trillion yuan via repos, cash bonds, and interbank lending, with daily average trading up 36% year-on-year. The weighted average interbank lending rate was 1.38% in March, 4.7 basis points lower than the same period last year.

VII. Foreign Exchange Reserves at $3.34 Trillion

By the end of March, the foreign exchange reserves balance was $3.34 trillion. The RMB exchange rate was 6.9194 yuan per dollar.

VIII. Cross-Border RMB Settlement

Cross-border RMB settlement under the current account reached 4.52 trillion yuan in Q1, and cross-border RMB settlement under direct investment reached 2.11 trillion yuan.