China's banking sector has made a significant move in the first quarter of 2024, extending a staggering 9.46 trillion yuan ($1.3 trillion) in new yuan-denominated loans, according to the People's Bank of China (PBoC). This surge reflects the nation's ongoing efforts to bolster economic growth amidst global uncertainties.
The broad money supply, known as M2, saw an impressive year-on-year increase of 8.3%, reaching 304.8 trillion yuan by the end of March. This rise encompasses cash in circulation and all deposits, indicating a healthy expansion of the financial system.
Narrow money supply (M1), which includes cash plus demand deposits, also grew by 1.1% year-on-year to 68.58 trillion yuan. Additionally, the amount of cash in circulation (M0) climbed 11% to 11.72 trillion yuan, showcasing increased liquidity in the economy.
However, not all indicators painted a rosy picture. Newly added total social financing, a metric that measures the funds flowing into the real economy from the financial system, decreased by 1.61 trillion yuan compared to the same period last year, totaling 12.93 trillion yuan for Q1.
These figures highlight the dynamic financial landscape in China, balancing robust loan growth with cautious financing trends, as the country navigates both domestic and international economic pressures.
Reference(s):
cgtn.com
