On July 22, the People's Bank of China (hereinafter referred to as the "Central Bank") released the statistical report on loan investment of financial institutions in the second quarter of 2025 (hereinafter referred to as the "report"). According to statistics, by the end of the second quarter of 2025, the balance of various RMB loans of financial institutions was 268.56 trillion yuan, a year-on-year increase of 7.1%, and RMB loans increased by 12.92 trillion yuan in the first half of the year. The Chief Economist of CITIC Securities, Mingming, told reporters that the steady growth of total credit reflects the strengthening of China's economic recovery momentum. From various sub items, the growth rate of inclusive small and micro loans, agricultural loans, etc. is significantly higher than the overall loan growth rate, reflecting the precise drip irrigation of policies on weak links. Yan Xiandong, Director of the Investigation and Statistics Department of the People's Bank of China, said at the press conference held by the National New Office on July 14 that China's credit in the first half of the year was characterized by "total growth and structural optimization". In the first half of the year, RMB loans increased by 12.92 trillion yuan, indicating that the financial system maintains a high level of credit support for the real economy. From the perspective of borrowing entities, loans to enterprises and institutions are the main drivers of credit growth. According to the report, in the first half of the year, loans to enterprises and institutions increased by 11.5 trillion yuan, accounting for 89% of all new loans. Among them, medium and long-term loans increased by 7.08 trillion yuan, which is the main component of the increase in loans to enterprises and institutions. The growth of total credit reflects a positive recovery trend in the economic fundamentals. The significant increase in medium and long-term loans to enterprises and institutions indicates an increased willingness for investment and expansion. ”Guo Yiming, Director of Investment Advisory at Shaanxi Jufeng Investment Information Co., Ltd., stated that in the first half of the year, finance continued to provide a stable source of funding for the real economy. Wang Qing, Chief Macro Analyst of Dongfang Jincheng, stated in an interview with reporters that the loan allocation in the second quarter still showed the characteristics of "strong enterprises and weak residents". Behind this is the strengthening of countercyclical adjustment in macro policies, the strengthening of financial stability for enterprises, and the implementation of the "five major articles" in finance, which directly promoted the rapid growth of enterprise loans in related fields. From the perspective of loan allocation, the report shows that inclusive small and micro loans have grown rapidly, green loans have increased significantly, agricultural loans have continued to grow, and loan support for science and technology innovation enterprises is relatively strong. Specifically, by the end of the second quarter of 2025, the balance of green loans in domestic and foreign currencies was 42.39 trillion yuan, an increase of 14.4% from the beginning of the year, and an increase of 5.35 trillion yuan in the first half of the year. During the same period, 274000 technology-based small and medium-sized enterprises received loan support, with a loan acquisition rate of 50%, which was 3.2 percentage points higher than the same period last year. The balance of domestic and foreign currency loans for technology-based small and medium-sized enterprises was 3.46 trillion yuan, a year-on-year increase of 22.9%, which was 16.1 percentage points higher than various loans. The balance of domestic and foreign currency loans for high-tech enterprises was 18.78 trillion yuan, a year-on-year increase of 8.2%, which was 1.4 percentage points higher than the growth rate of various loans. The growth rate of loans to technology-based enterprises is higher than that of various loans, reflecting the emphasis on innovation and the acceleration of economic transformation. ”Guo Yiming stated that the balance of green loans increased significantly in the first half of the year, and the loans for science and technology innovation enterprises were outstanding. The reason behind this is due to policy guidance, which encourages and supports the real economy, green development, and technological innovation. At the same time, the prospects of related industries are good, attracting capital inflows. Wang Qing stated that external fluctuations intensified in the second quarter, and China accelerated the implementation of various proactive macro policies. In May, the central bank implemented interest rate cuts and reserve requirement ratio cuts, and continued to inject medium-term liquidity into the market through MLF and buyout reverse repurchase, enhancing the ability of banks to provide credit. Credit support for key areas and weak links in the real economy is more precise and effective. When it comes to the pace of future credit disbursement, Mingming stated that it is expected that the growth rate of credit will remain stable, and the structure is expected to be further optimized. Traditional driving forces such as real estate may stabilize marginally, while new driving forces such as technology and green are expected to accelerate their rise. Cooperate with loose policies and structural tools to guide financial resources towards innovation driven and livelihood sectors, providing support for high-quality development. The future external environment remains complex and severe, and the policy of expanding domestic demand will not be relaxed. The financial support for the real economy will be further strengthened in the future, and new loans will continue to maintain a rapid growth momentum. In addition, in the second half of the year, the central bank is expected to enrich the toolbox of structural monetary policy and better utilize existing targeted tools such as agricultural and small-scale refinancing, service consumption and elderly care refinancing, and affordable housing refinancing. ”Wang Qing believes that doing a good job in the "five major articles" of finance can play the role of using structure to lead the overall situation, further promoting the deepening and implementation of the process of broad credit. Taking into account various factors, it is expected that the year-on-year increase in new credit and social financing for the whole year will recover to a certain scale. (New Society)