China’s banking sector has extended 9.46 trillion yuan ($1.3 trillion) in new yuan-denominated loans during the first quarter of 2024, according to data released by the People’s Bank of China on Friday. This significant increase in lending underscores the country’s efforts to stimulate economic growth and support various sectors amid global financial uncertainties.
The M2 money supply, a broad measure that encompasses cash in circulation and all deposits, saw an 8.3 percent year-on-year rise, reaching 304.8 trillion yuan by the end of March. This expansion indicates a robust monetary environment conducive to investment and spending.
Meanwhile, the M1 money supply, which includes cash in circulation and demand deposits, stood at 68.58 trillion yuan at the end of March, marking a 1.1 percent increase from the previous year. The moderate growth in M1 reflects steady transactional balances within the economy.
The M0, representing the total cash in circulation, increased by 11 percent year-on-year to 11.72 trillion yuan as of the end of last month. The rise in M0 suggests heightened cash usage, possibly linked to consumer spending and liquidity preferences.
In terms of social financing, newly added total social financing—a comprehensive measure of funds that the real economy receives from the financial system—amounted to 12.93 trillion yuan in the first quarter. This figure is down by 1.61 trillion yuan compared to the same period last year, indicating a slight deceleration in overall financing activities.
Reference(s):
cgtn.com
