China’s yuan-denominated loans have experienced significant growth in the first seven months of the year, rising by 13.53 trillion yuan ($1.89 trillion), according to data released by the central bank on Tuesday. This surge reflects the nation’s ongoing efforts to stimulate economic activity amid global financial uncertainties.
The broad money supply, known as “M2″\u2014which encompasses cash in circulation and all deposits\u2014increased by 6.3 percent year on year, reaching 303.31 trillion yuan by the end of July. This expansion indicates a steady flow of liquidity in the Chinese economy, supporting both consumer spending and business investment.
However, newly added total social financing\u2014a key measure of the funds that the real economy receives from the financial system\u2014totaled 18.87 trillion yuan during the same period. This figure represents a decrease of 3.22 trillion yuan compared to the same period in 2023, suggesting a cautious approach by financial institutions amid shifting market conditions.
Analysts suggest that the growth in yuan loans highlights the central bank’s commitment to fostering economic stability and supporting key industries. The adjustments in total social financing may reflect strategic shifts in lending practices to mitigate potential risks and ensure sustainable growth.
As China continues to navigate the complexities of the global economy, these financial indicators provide valuable insights into the country’s monetary policies and economic health. The data underscores the dynamic nature of China’s financial landscape, offering important considerations for investors and stakeholders worldwide.
Reference(s):
cgtn.com
