In April, RMB loans in China increased by 718.8 billion yuan, and the increase in social financing scale was 1.22 trillion yuan. Compared with March, the increase in loans and social financing showed a cliff-like decline; at the same time, M2 increased by 12.4% year-on-year, a moderate slowdown.
Updated May 11, 2023 17:05 CST
According to data released by the People’s Bank of China on Thursday afternoon, RMB loans increased by 718.8 billion yuan in April, and the scale of social financing increased by 1.22 trillion yuan. At the end of the month, the stock of social financing scale increased by 10% year-on-year. 12.4%.
Compared with March, the increase in loans and social financing has fallen off a cliff, the growth rate of social financing stocks has remained flat, and M2 has slowed down moderately. At the same time, loans and M2 are also lower than expected.
This further confirms that after the retaliatory recovery of the economy at the beginning of the year, the follow-up recovery momentum is insufficient. Of course, it is also related to seasonal factors: due to assessment needs, banks generally sprint loans at the end of the quarter, the middle of the year, and the end of the year.
Previously, in March, RMB loans increased by 3.89 trillion yuan, and the scale of social financing increased by 5.38 trillion yuan. At the end of the month, the stock of social financing scale increased by 10% year-on-year, and M2 increased by 12.7% year-on-year.
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According to data released by the People’s Bank of China on Thursday afternoon, RMB loans increased by 718.8 billion yuan in April, and the scale of social financing increased by 1.22 trillion yuan. At the end of the month, the stock of social financing scale increased by 10% year-on-year. 12.4%.
Compared with March, the increase in loans and social financing has fallen off a cliff, the growth rate of social financing stocks has remained flat, and M2 has slowed down moderately. At the same time, loans and M2 are also lower than expected.
This further confirms that after the retaliatory recovery of the economy at the beginning of the year, the follow-up recovery momentum is insufficient. Of course, it is also related to seasonal factors: due to assessment needs, banks generally sprint loans at the end of the quarter, the middle of the year, and the end of the year.
Previously, in March, RMB loans increased by 3.89 trillion yuan, and the scale of social financing increased by 5.38 trillion yuan. At the end of the month, the stock of social financing scale increased by 10% year-on-year, and M2 increased by 12.7% year-on-year.
In January, RMB loans increased by 4.9 trillion yuan, exceeding the historical high of 3.98 trillion yuan in January last year, a record high; the increase in social financing scale was 5.98 trillion yuan, second only to the historical high of 6.18 trillion yuan in January last year , the second highest in history; M2 increased by 12.6% year-on-year, a new high since April 2016 (12.8% at the time). However, the stock of social financing scale increased by 9.4% year-on-year, slowing down for the fourth consecutive month.
The surge in relevant data in January is mainly due to the fact that after the release of epidemic prevention measures, China has passed the infection period smoothly, residents’ lives and business production have returned to normal, and the demand for funds in the real economy has increased significantly. At the same time, it is also driven by the bank’s concept of “early investment and early benefits” .
If compared with the low base of the same period last year, new loans, social financing increment and M2 growth rate increased in April this year, but the growth rate of social financing stock declined slightly.
In April last year, Shanghai was closed due to the new crown epidemic, which led to a cliff-like decline in new loans and social financing. The amount dropped from 4.65 trillion yuan to only 910.2 billion yuan. At the end of the month, the stock of social financing scale increased by 10.2% year-on-year, and M2 increased by 10.5%.
In addition, credit was far worse than expected in April, and M2 was slightly lower than expected.
According to a survey of economists by The Wall Street Journal, China’s new bank loans in April may have dropped to 1.33 trillion yuan, and M2 increased by 12.5% year-on-year.
The People’s Bank of China also announced that at the end of April, narrow money (M1) grew by 5.3% year-on-year, and the growth rate was 0.2 percentage points higher than that at the end of last month and the same period last year, and money in circulation (M0) increased by 10.7% year-on-year.
Prior to the end of March, M1 increased by 5.1% year-on-year, and M0 increased by 11% year-on-year.
(This article is from Dow Jones Chinese Financial News)