China's financial sector recorded a robust start to 2024 as new yuan loans surged by 5.13 trillion yuan ($706.7 billion) in January, according to People's Bank of China data released Friday. The figure highlights renewed credit expansion amid ongoing economic stabilization efforts.
Monetary Pulse Check
M2 money supply – a key liquidity indicator – grew 7% year-on-year to reach 318.52 trillion yuan. Meanwhile, aggregate social financing hit 7.06 trillion yuan last month, marking a 583.3 billion yuan increase from January 2023 levels. Total social financing now stands at 415.2 trillion yuan.
Strategic Reserves Hold Steady
China maintained $3.2 trillion in foreign exchange reserves, underscoring continued confidence in managing global economic headwinds. Analysts suggest these indicators reflect calculated monetary policy maneuvers to balance growth support and financial risk prevention.
Why It Matters
The credit expansion comes as global markets watch China's post-pandemic recovery trajectory. For entrepreneurs and investors, these figures signal potential opportunities in infrastructure development, green energy projects, and consumer markets – key sectors receiving policy support.
Reference(s):
cgtn.com
