China's direct financing exceeds loans in 2025, says PBOC governor

ChainCatcher report: People’s Bank of China Governor Pan Gongsheng wrote that China’s financing structure is undergoing profound changes. In 2025, the incremental social financing scale reached RMB 35.6 trillion, with the combined share of corporate bonds, government bonds, and equity financing reaching approximately 47%, surpassing loans for the first time. By the end of June 2026, the proportion of indirect financing in the total social financing scale declined to around two-thirds, with loan balances falling to about 60% and direct financing balances rising to approximately one-third. Over the past decade, the share of new loans allocated to real estate and infrastructure construction has dropped from over 60% to around 10%, while the share of new loans directed toward the “Five Major Articles” of finance has risen to over 70%. Loan growth for technology-based small and medium-sized enterprises has remained around 20% annually, and the average annual growth rate of inclusive small and microenterprise loans is approximately 20%. The number of A-share listed companies exceeds 5,500, with a total market capitalization surpassing RMB 110 trillion; the total size of the bond market has exceeded RMB 200 trillion, with cumulative issuance of science and technology innovation bonds reaching approximately RMB 3 trillion.