China’s yuan loans grow by 10.19 trillion yuan in Jan-April

A pedestrian passes by the People’s Bank of China in Beijing, April 22, 2024. /CFP

A pedestrian passes by the People’s Bank of China in Beijing, April 22, 2024. /CFP

China’s yuan-denominated loans rose by 10.19 trillion yuan ($1.41 trillion) in the first four months of this year, central bank data showed on Saturday.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, climbed 7.2 percent year on year to 301.19 trillion yuan at the end of April.

The M1, which covers cash in circulation plus demand deposits, stood at 66.01 trillion yuan at the end of April, down 1.4 percent year on year, according to the People’s Bank of China (PBOC), the country’s central bank.

The social financing scale has accumulated to 12.73 trillion yuan in the first four months of 2024, a decrease of 3.04 trillion yuan compared to the same period of last year. The increase of yuan-denominated loans extended to the real economy from social financing reached 9.44 trillion yuan.

Surging crowds in a commercial district in Nanjing, Jiangsu Province during the May Day holiday, May 3, 2024. /CFP

Surging crowds in a commercial district in Nanjing, Jiangsu Province during the May Day holiday, May 3, 2024. /CFP

Bruce Pang, JLL Greater China’s chief economist, noted that April’s financial data revealed PBOC’s efforts to bolster sluggish demand and mitigate disinflationary pressures by ensuring smooth credit support growth during a traditionally weak month.

Despite slower-than-expected issuance of government bonds in the initial four months of the year, Pang predicts a reversal in the upcoming months due to heightened fiscal support and a resurgence in government borrowing. The surge in government support is expected to maintain credit and liquidity levels within reasonable bounds.

Outstanding yuan loans reached 291.59 trillion yuan at the end of April, marking an increase of 6.6 percent year on year, data showed.

(With input from Xinhua)