PBOC: Bond and Equity Financing Exceed Loans by ~7 Points in Social Financing

The composition shift matters more than the headline total: with government bond net financing alone nearly matching all RMB loans to the real economy, the marginal funding engine for China's real economy is increasingly the sovereign balance sheet rather than bank credit. That has direct implications for banks' traditional intermediary role, for the pricing of Chinese rates and credit, and for how much of the social financing print reflects genuine private-sector demand versus public-sector issuance. Whether this bond-over-loan tilt persists as policy evolves is the open question.