BEIJING, Aug. 14 (Xinhua) -- China's yuan-denominated loans rose by 10.38 trillion yuan (about 1.53 trillion U.S. dollars) in the first seven months of 2026, central bank data showed Friday.

Outstanding yuan loans stood at 282.29 trillion yuan at the end of July, up 5.1 percent year on year, according to the People's Bank of China.

M2, a broad measure of money supply that covers cash in circulation and all deposits, increased by 7.7 percent year on year to 355.51 trillion yuan by the end of last month.

M1, which covers currency in circulation, corporate demand deposits, personal demand deposits and provisions received by non-bank payment institutions, reached 115.46 trillion yuan at the end of July, up 4 percent from a year earlier.

China's outstanding aggregate financing to the real economy stood at 463.27 trillion yuan at the end of July, up 7.4 percent year on year, according to the central bank.

"Outstanding aggregate financing to the real economy, M2 and other broad financial aggregates have all maintained reasonable growth, with their year-on-year growth rates continuing to exceed nominal GDP growth. This indicates that overall financing conditions remain relatively accommodative," said Tian Xuan, dean of Peking University's Guanghua School of Management.

China's credit structure has also improved. At the end of June, loans to technology, green development, inclusive finance, elderly care and the digital economy all posted year-on-year growth rates higher than that of overall loans.

Going forward, monetary and credit policies should play a stronger guiding role in channeling funds to the real economy, said Dong Qingma, deputy head of the Institute of Chinese Financial Studies at Southwestern University of Finance and Economics.

Alongside targeted credit support, overall financing costs have continued to decline. China's loan interest rates have stayed at low levels since the start of this year, and that trend persisted into July.

"Interest rates are price signals reflecting the supply-demand balance of funds. The downward trend in lending rates points to relatively ample credit provision," said Zhang Xu, an analyst at Everbright Securities.

Zhang added that greater transparency in corporate financing costs, as disclosure requirements advance, will help further reduce the funding burden on businesses and keep overall social financing costs low.