The People's Bank of China released China's monetary policy implementation report for the second quarter of 2026. The content of the column suggests downplaying the focus on loans as a single financing channel, and looking at loans and bond financing together. In recent years, capital-intensive industries such as real estate and infrastructure construction have continued to adjust, while new types of productivity are lighter, bank loans required per unit of economic growth have declined accordingly, and demand for loans has naturally declined. At the same time, the importance of other channels such as bonds and stocks has increased. In particular, technology-based enterprises have differentiated risk-return characteristics at different stages of growth. They need diversified financing channels, including bonds and equity financing, to provide financial support throughout the life cycle, and the financial system is more compatible with the transformation and upgrading of the industrial structure. In the first half of this year, net financing of corporate bonds and stocks was 2.4 trillion yuan, an increase of about 1 trillion yuan over the same period last year. If you look at corporate loans, corporate bonds, and stocks combined, the first half of this year increased by 13.5 trillion yuan, an increase of about 600 billion yuan over the previous year.

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