China's economy continues to show robust signs of growth as yuan-denominated loans 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 substantial increase reflects the nation's ongoing efforts to stimulate economic activity and support development amid global uncertainties.
The M2 money supply—a broad measurement that includes cash in circulation and all types of deposits—experienced a 6.8 percent year-on-year rise, reaching 309.48 trillion yuan by the end of September. This growth in money supply signals increased liquidity in the financial system, which can foster investment and consumption across various sectors of the economy.
However, newly added social financing, which represents the total amount of funds that the real economy obtains from the financial system, totaled 25.66 trillion yuan in the third quarter. This figure is down by 3.68 trillion yuan compared to the same period in 2023, bringing the total social financing to 402.19 trillion yuan. The decrease suggests a cautious approach by financial institutions in extending credit, possibly due to concerns about risk management and economic stability.
Meanwhile, China's foreign exchange reserves remained strong, standing at $3.32 trillion at the end of September. The substantial reserves provide a buffer against external shocks and enhance confidence in the nation's financial solidity.
These financial indicators offer a glimpse into China's economic health and its position in the global economy. The significant growth in yuan loans and money supply indicates positive momentum, while the slight dip in social financing may reflect shifting dynamics in domestic and international markets. Economists and investors around the world are closely monitoring these trends, as China's economic performance has far-reaching implications for global trade and financial systems.
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China's yuan loans grow by 16.02 trillion yuan in first 3 quarters
cgtn.com
