Changes in social financing show reforms picking up: PBOC official

Structural changes of social financing signal the nation's quickened pace of pressing ahead with supply-side reform, official data showed on Friday.

"Reforms are starting to pay off," said Sheng Songcheng, head of the statistics department at People's Bank of China, the central bank. "Promising changes can be reflected by structural changes in the nation's total social financing—outstanding financing in the overcapacity sector declined and that in the real estate sector witnessed a slower growth."

The level of outstanding bank loans rose by 12.3 percent compared with a year earlier, according to the PBOC's website.

In the meantime, outstanding medium- to long-term business loans in the overcapacity sector declined by 0.5 percent year on year, in which that of the steel sector fell by 6.7 percent.

Outstanding loans in the real estate sector increased by 10.1 percent by the end June, which is 13.5 percentage points lower compared with the same period of last year.

The central bank said its prioritized tasks for 2016 monetary policy will help slash overcapacity, cut stockpiles, reduce leverage, lower costs of doing business and fix shortcomings, according to a statement released earlier this year.