China’s yuan loans rise around USD2.3 trillion in 10 months
Date
11/11/2024 7:53:18 AM
(MENAFN) China's yuan-denominated loans experienced a significant increase in the first ten months of the year, rising by 16.52 trillion yuan, which is roughly equivalent to 2.3 trillion U.S. dollars, according to data released by the central bank on Monday. This surge in lending reflects the continued support for economic growth through credit expansion as the country navigates its recovery from the impacts of the pandemic and other global challenges.
The increase in loans is part of broader financial trends seen in the country's monetary landscape. The M2, which is a broad measure of the money supply, showed a year-on-year growth of 7.5 percent, reaching a total of 309.71 trillion yuan by the end of October. M2 includes cash in circulation as well as all types of deposits, and its growth indicates an expanding money supply, contributing to overall economic activity and liquidity within the system.
The rise in M2 suggests that China’s financial institutions are continuing to inject liquidity into the economy, supporting investment and consumption. This comes as the government has implemented various pro-growth measures, aimed at stimulating demand and ensuring that businesses and consumers have access to sufficient credit to sustain growth. These actions are critical as the country seeks to balance economic recovery with efforts to stabilize its financial system.
These monetary trends, alongside the increase in yuan-denominated loans, highlight the effectiveness of China's financial policies in fostering economic stability. The government's proactive steps to increase the money supply and encourage lending are expected to support future economic expansion, particularly in areas such as infrastructure development, innovation, and consumption, as China continues its pursuit of high-quality growth.
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