The People’s Bank of China announced on Friday afternoon that RMB loans increased by 1.81 trillion yuan in February, and the social financing scale increased by 3.16 trillion yuan. At the end of the month, the stock of social financing scale increased by 9.9% year-on-year, while the broad money supply (M2) increased by 12.9% year-on-year .
Updated March 10, 2023 at 18:10 CST
The People’s Bank of China announced on Friday afternoon that RMB loans increased by 1.81 trillion yuan in February, and the social financing scale increased by 3.16 trillion yuan. At the end of the month, the stock of social financing scale increased by 9.9% year-on-year, while the broad money supply (M2) increased by 12.9% year-on-year .
Compared with the previous value, new RMB loans plummeted by 63%, and the increase in social financing scale dropped sharply by 47%. However, the growth rate of M2 increased by 0.3 percentage points, hitting a new high after March 2016 (13.4%). The year-on-year growth rate also turned upward. In addition, new loans and M2 were higher than expected.
Previously, RMB loans increased by 4.9 trillion yuan in January last year, breaking through 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 Yuan, the second highest in history; M2 increased by 12.6% year-on-year, hitting 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.
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The People’s Bank of China announced on Friday afternoon that RMB loans increased by 1.81 trillion yuan in February, and the social financing scale increased by 3.16 trillion yuan. At the end of the month, the stock of social financing scale increased by 9.9% year-on-year, while the broad money supply (M2) increased by 12.9% year-on-year .
Compared with the previous value, new RMB loans plummeted by 63%, and the increase in social financing scale dropped sharply by 47%. However, the growth rate of M2 increased by 0.3 percentage points, hitting a new high after March 2016 (13.4%). The year-on-year growth rate also turned upward. In addition, new loans and M2 were higher than expected.
Previously, RMB loans increased by 4.9 trillion yuan in January last year, breaking through 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 Yuan, the second highest in history; M2 increased by 12.6% year-on-year, hitting 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” .
According to the usual practice, the credit and social financing increments in February last year also fell sharply after reaching record highs in January, reaching 1.23 trillion yuan and 1.19 trillion yuan respectively. M2 increased by 9.2% year-on-year, and the stock of social financing scale increased by 10.2% year-on-year. %.
Compared with the same period last year, the increase in credit and social financing in February this year surged by 47% and 1.66 times respectively. Of course, this is related to the wrong month of the Spring Festival (the Spring Festival last year was in February, and this year it is in January). However, after the epidemic prevention is released this year , The surge in business and personal funding needs is also a major reason.
According to a survey of economists by The Wall Street Journal, China’s new bank loans in February may drop sharply to 1.4 trillion yuan, and M2 may increase by 12.5% year-on-year.
The People’s Bank of China also announced that at the end of February, narrow money (M1) grew by 5.8% year-on-year, 0.9 percentage points lower than the end of the previous month, and 1.1 percentage points higher than the same period last year. Currency in circulation (M0) increased by 10.6% year-on-year.
Prior to the end of January, M1 increased by 6.7% year-on-year, and M0 increased by 7.9% year-on-year.
(This article is from Dow Jones Chinese Financial News)
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