China's yuan-denominated loans surge USD2.3T in January-October period
Date
11/11/2024 7:28:44 AM
(MENAFN) China's yuan-denominated loans saw a significant increase of 16.52 trillion yuan (approximately 2.3 trillion U.S. dollars) in the first ten months of 2024, according to data released by the central bank on Monday. This surge reflects the effectiveness of a series of pro-growth policies implemented by the Chinese government, which have played a crucial role in stabilizing social expectations, enhancing market confidence, accelerating capital flow, and boosting overall market activity, according to experts.
In line with these developments, the broad measure of money supply, known as M2, which includes both cash in circulation and all deposits, grew by 7.5 percent year-on-year, reaching 309.71 trillion yuan by the end of October 2024. Analysts point out that the rising M2 growth rate signals China’s intensified efforts to ensure stable economic growth in the face of global economic challenges.
On the other hand, M1, which tracks cash in circulation along with demand deposits, showed a decline of 6.1 percent year-on-year, totaling 63.34 trillion yuan at the end of October. This decrease may reflect a shift in the public's spending behavior or a response to changing market conditions. However, M0, which specifically tracks the amount of cash circulating in the economy, experienced a notable rise of 12.8 percent compared to the previous year, totaling 12.24 trillion yuan, signaling increased liquidity in the hands of the public.
By the end of October 2024, outstanding yuan loans had reached 254.1 trillion yuan, reflecting an 8 percent increase from the previous year. This continued growth in yuan-denominated loans highlights China's efforts to maintain economic stability and expand credit availability, which has been crucial in supporting both domestic consumption and investment.
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