China’s Yuan Loans Grow by 16.02 Trillion Yuan in First Three Quarters
China’s yuan-denominated loans have surged by 16.02 trillion yuan (approximately $2.27 trillion) in the first three quarters of the year, according to data released by the People’s Bank of China on Monday. This significant increase reflects the continued expansion of credit in the world’s second-largest economy as it navigates global economic challenges.
The M2 money supply, a broad measure that includes cash in circulation and all deposits, rose by 6.8 percent year-on-year to reach 309.48 trillion yuan at the end of September. The growth in M2 indicates ample liquidity in the financial system, supporting economic activities across various sectors.
Newly added social financing, which measures funds provided to the real economy by the financial system, totaled 25.66 trillion yuan in the third quarter. This figure is down 3.68 trillion yuan compared to the same period in 2023, bringing China’s total social financing to 402.19 trillion yuan. The decline suggests a moderation in credit expansion, possibly due to regulatory efforts to manage financial risks and ensure sustainable growth.
Meanwhile, China’s foreign exchange reserves stood at $3.32 trillion at the end of September, maintaining one of the world’s largest reserves. The substantial reserves provide a buffer against external shocks and underline the country’s financial stability.
These financial indicators underscore China’s ongoing efforts to maintain economic resilience amid global uncertainties. The expansion of yuan loans and steady growth of the money supply highlight the central bank’s supportive stance towards economic activity, while adjustments in social financing reflect a balanced approach to sustaining growth without fostering excessive debt.
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China's yuan loans grow by 16.02 trillion yuan in first 3 quarters
cgtn.com
