China's yuan-denominated loans surge by USD1.41T in 1st 4 months
Date
5/12/2024 9:46:30 AM
(MENAFN) According to data released by the central bank, yuan-denominated loans in China surged by 10.19 trillion yuan (equivalent to 1.41 trillion U.S. dollars) during the first four months of this year. This substantial increase reflects ongoing efforts to stimulate economic activity and support growth in key sectors.
The broad measure of money supply, known as M2, expanded by 7.2 percent year-on-year, reaching 301.19 trillion yuan by the end of last month. Meanwhile, the narrower measure, M1, which includes cash in circulation and demand deposits, was recorded at 66.01 trillion yuan at the end of April, marking a modest decline of 1.4 percent compared to the same period last year.
Furthermore, social financing, a gauge of overall credit provision in the economy, amounted to 12.73 trillion yuan in the first four months of 2024. Although this represents a decrease of 3.04 trillion yuan compared to the corresponding period last year, it still underscores the significant support provided to the economy.
Of particular note is the increase in yuan-denominated loans extended to the real economy, which reached 9.44 trillion yuan within the total social financing scale. This highlights efforts to channel credit towards productive sectors, such as manufacturing, infrastructure, and small and medium-sized enterprises, to fuel economic expansion and promote sustainable growth.
Overall, outstanding yuan loans reached 291.59 trillion yuan at the end of April, reflecting a year-on-year increase of 6.6 percent. This data indicates continued efforts by policymakers to ensure ample liquidity in the financial system and provide necessary funding support to drive economic recovery and development initiatives in China.
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