China's Yuan Loans Increase by 10.44 Trillion Yuan in Jan.-Aug. Period, Central Bank Maintains Loose Monetary Policy

China's central bank reported a significant increase in yuan-denominated loans, rising by 10.44 trillion yuan (approximately 1.54 trillion U.S. dollars) in the first eight months of 2026. By the end of August, outstanding yuan loans grew 4.9% year-on-year to 282.35 trillion yuan. M2 money supply increased by 7.5% year-on-year to 356.81 trillion yuan, and M1 rose 4.1% to 115.77 trillion yuan. The People's Bank of China announced its intention to continue a 'moderately loose monetary policy' in the second half of 2026, focusing on strengthening counter-cyclical adjustment and maintaining ample liquidity to support sustained economic development.