Bond and equity financing accounted for 50.31% of China’s incremental aggregate social financing in the first eight months of 2026, exceeding the share of loans for the first time and rising by nearly 20 percentage points from five years earlier. The shift reflects growing use of direct financing as property-related and local-government borrowing demand weakens, while technology-oriented companies draw on equity, bonds and other funding channels. Aggregate social financing totaled CNY23.91 trillion in January-August, CNY2.64 trillion less than a year earlier, while outstanding aggregate social financing reached CNY464.8 trillion at end-August, up 7.2% year on year. M2 grew 7.5% to CNY356.81 trillion and outstanding RMB loans rose 4.9% to CNY282.35 trillion. Authorities said aggregate financing and money-supply growth remained broadly aligned with nominal economic growth despite slower loan expansion. RMB loans to the real economy rose CNY10.23 trillion, down CNY2.71 trillion from a year earlier, while corporate bond net financing reached CNY2.79 trillion and domestic equity financing by non-financial enterprises totaled CNY470 billion. Household loans fell CNY1.03 trillion, underscoring weak consumer and mortgage borrowing, whereas loans to enterprises and institutions increased CNY11.26 trillion. Ample interbank liquidity and policy support are intended to help financing reach technology, green-transition and infrastructure-related sectors.