The People’s Bank of China released its Q2 2026 Monetary Policy Implementation
Report, saying total social financing (TSF) and broad money (M2) are broad
macro‑financial aggregates that capture diverse financing channels. The report
notes that, mathematically, rising bond financing can cause M2 or deposit growth
to diverge from loan growth and that such divergence does not necessarily
indicate weaker support for the real economy or idle funds. Compared with
nominal GDP growth, TSF and M2 growth remain higher, indicating monetary and
financial conditions are relatively loose.
