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      China's Financing Structure Set to Shift by 2025

      Pan Gongsheng, the Governor of the People's Bank of China, announced significant changes in China's financing structure, projecting that by 2025, direct financing will exceed traditional loans for the first time. He indicated that the incremental social financing scale is expected to reach 35.6 trillion yuan, with corporate bonds, government bonds, and stock financing accounting for approximately 47% of this total.

      By mid-2026, the balance of indirect financing in the social financing scale is anticipated to decrease to about two-thirds, while the loan balance is expected to drop to around 60%. In contrast, the share of direct financing is projected to rise to about one-third. This shift reflects a broader trend over the past decade, where the proportion of new loans allocated to real estate and infrastructure has fallen from over 60% to roughly 10%.

      Additionally, the financial sector has seen a rise in new loans, with over 70% now directed towards the 'five major articles' of finance. The growth rate for loans to technology-based small and medium-sized enterprises remains robust at around 20%, while inclusive micro and small loans are also growing at a similar rate. The A-share market features over 5,500 listed companies with a total market value exceeding 110 trillion yuan, and the bond market has surpassed 200 trillion yuan, with sci-tech bonds accounting for about 3 trillion yuan in cumulative issuance.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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