PBOC Governor Pan Gongsheng: Direct financing share surpassed loans for the first time in 2025

Pan Gongsheng, Governor of the People's Bank of China (PBOC), stated that China's financing structure is undergoing significant changes. In 2025, direct financing—comprising corporate bonds, government bonds, and equity—accounted for approximately 47% of total social financing growth, exceeding the share of loans for the first time. By the end of June 2026, the share of indirect financing in total social financing fell to about two-thirds, with loan balances dropping to around 60% and direct financing rising to one-third. Over the past decade, the share of new loans allocated to real estate and infrastructure has declined from over 60% to about 10%, while lending to the "five major areas" of finance now exceeds 70% of new loans.