Q1 China Finance: Corporate Bond & Equity Financing Shares Rise; Tech, Digital Sectors Gain More (Apr 13)

I. Financing Structure Shifts Toward Bonds and Equity

Q1 2026 financial data revealed a notable structural shift: bond and equity financing shares rose while loan financing declined as a proportion of total social financing.

II. Corporate Bond Financing Surges

The aggregate financing to the real economy in Q1 totaled 14.83 trillion yuan. RMB loans accounted for 60% of Q1 aggregate financing, 3.9 percentage points lower than the same period last year, while corporate bond financing share rose to 7.1%, up 3.6 percentage points year-on-year. Equity financing share also increased.

Corporate bond net financing reached 1.05 trillion yuan in Q1, more than doubling from the same period last year. The 5-year AAA-rated corporate bond yield traded at approximately 1.9%, down 28 basis points year-on-year.

III. Key Sectors Receive Stronger Support

Loans to technology, green finance, inclusive finance, elderly care, and digital transformation maintained double-digit growth rates. New corporate loan rates averaged approximately 3.1% in March, about 25 basis points lower than the same period last year.

IV. Price Environment Improves

The PPI turned positive in March, rising 0.5% year-on-year and 1% month-on-month, the sixth consecutive month of positive growth. Raw material purchase prices rose to 63.9% and factory gate prices to 55.4%.