China's financial sector is experiencing significant growth as yuan-denominated loans skyrocketed 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.
The country's broad money supply, known as M2, saw a 6.8 percent year-on-year increase, reaching 309.48 trillion yuan by the end of September. This rise highlights a robust expansion in liquidity within the economy, supporting various sectors and fostering business growth.
Despite the overall growth in loans, newly added social financing in the third quarter amounted to 25.66 trillion yuan, marking a decrease of 3.68 trillion yuan compared to the same period in 2023. This brings China's total social financing to 402.19 trillion yuan, indicating a potential shift in how funds are being allocated within the real economy.
In addition to domestic financial metrics, China maintained strong foreign exchange reserves, standing at $3.32 trillion by the end of September. These reserves reinforce the country's economic stability and its capacity to manage external financial pressures.
Reference(s):
China's yuan loans grow by 16.02 trillion yuan in first 3 quarters
cgtn.com
