Xinhua News Agency, Beijing, July 13th. Question: Efforts to serve the real economy and stabilize the economic market – the relevant person in charge of the central bank explained the financial data in the first half of the year
Xinhua News Agency reporter Wu Yu
Since the beginning of this year, my country’s total financial volume has grown steadily, and the support for the real economy has been further strengthened. In the first half of the year, which areas will the new credit be invested in? How effective is the implementation of structural monetary policy tools? How will finance support and stabilize the economy in the second half of the year? At the press conference held by the State Council Information Office on the 13th, the relevant person in charge of the People’s Bank of China analyzed the financial data in the first half of the year in detail and responded to hot issues.
Further strengthening of support for the real economy
Since the beginning of this year, affected by unexpected factors such as the epidemic and the conflict between Russia and Ukraine, my country’s economy has faced certain downward pressure. Ruan Jianhong, Director of the Investigation and Statistics Department of the People’s Bank of China, introduced at the press conference that in the first half of the year, the People’s Bank of China stepped up the implementation of a prudent monetary policy, gave full play to the dual functions of monetary policy tools in terms of volume and structure, proactively responded, and strived to serve the real economy and stabilize the The broader economy.
Data show that in the first half of the year, new RMB loans were 13.68 trillion yuan, an increase of 919.2 billion yuan over the same period of the previous year; the scale of new social financing was 21 trillion yuan, an increase of 3.2 trillion yuan over the same period of the previous year.
Poster: my country’s RMB loans will increase by 13.68 trillion yuan in the first half of 2022 (Compiled by Liu Qian issued by Xinhua News Agency)
Ruan Jianhong introduced that in the first half of the year, the People’s Bank of China lowered the deposit reserve ratio of financial institutions by 0.25 percentage points, turned over 900 billion yuan of profit from the balance, and reasonably increased the supply of liquidity. The credit support of financial institutions to the real economy continued to increase. In the first half of the year, RMB loans to enterprises and institutions increased by 11.4 trillion yuan, an increase of 3.03 trillion yuan over the same period of the previous year.
At the end of June, the broad money supply (M2) increased by 11.4% year-on-year, 2.8 percentage points higher than the same period last year. In the first half of the year, RMB deposits increased by 18.82 trillion yuan, a year-on-year increase of 4.77 trillion yuan.
In Ruan Jianhong’s view, the current increase in renminbi deposits is increasing, and the growth rate of M2 is relatively high, mainly due to the financial system’s efforts to serve the real economy, and the corresponding increase in derived currencies. In addition, this year’s monetary policy and fiscal policy cooperated with each other, and the pace of fiscal expenditure accelerated, which also promoted the growth of M2.
In addition, in the first half of the year, the comprehensive financing cost of enterprises was stable with some decline. In June, the interest rate on newly issued corporate loans was 4.16%, 34 basis points lower than a year earlier.
Direct capital flow to key areas and weak links
Since the beginning of this year, the People’s Bank of China has launched a number of structural monetary policy tools to continuously strengthen its support for key areas and weak links in the national economy.
Data show that at the end of June, the balance of medium and long-term loans to the manufacturing industry in my country increased by 29.7% year-on-year, 18.5 percentage points higher than the growth rate of various loans; the balance of inclusive small and micro loans increased by 23.8% year-on-year, higher than the growth rate of various loans. 12.6 percentage points. Up to now, the special re-loan for clean and efficient utilization of coal has accumulatively supported banks to issue low-cost loans of 43.9 billion yuan to enterprises.
Zou Lan, director of the Monetary Policy Department of the People’s Bank of China, introduced that structural monetary policy tools are conducive to encouraging financial institutions to optimize their credit structure and achieve the effect of accurately tilting funds to areas such as inclusive finance, green development, and technological innovation. The new tools created this year, such as re-loans for technological innovation, special re-loans for inclusive pensions, and special re-loans for transportation and logistics, will be issued on a quarterly basis and will be applied for for the first time in July. At present, the People’s Bank of China is promoting related work in an orderly manner.
Investment in infrastructure construction is an important means of stabilizing the macro economy. Zou Lan introduced that the People’s Bank of China has increased the credit line of development policy banks in June to increase loan support for infrastructure construction projects that are useful in the long term and feasible in the short term. Recently, the People’s Bank of China has also supported the China Development Bank and the Agricultural Development Bank of China to set up financial instruments with a total scale of 300 billion yuan to solve the problem of difficulty in obtaining capital for major projects.
“Through the support of financial tools, we can quickly and accurately get through the blockages caused by the inability of capital to be in place, promote the early start of the project, and form a physical workload as soon as possible to help stabilize the macroeconomic market.” Zou Lan said that after the capital is fully in place, the early stage The 800 billion yuan policy and development medium and long-term credit funds can be followed up in a timely manner, and commercial bank loans and social capital can be leveraged to follow up quickly.
The picture shows the successful swivel of the super-long swivel beam across the Longyan Railway, a key control project of the entire Wei (Fang) Yan (Taiwan) high-speed railway line, a national key infrastructure project.Photo by Xinhua News Agency reporter Guo Xulei
Adequate policy space and reserves of tools to meet challenges
In recent years, my country has insisted on implementing a normal monetary policy. Zou Lan said that this has left sufficient policy space and tool reserves to cope with new challenges and changes that exceed expectations.
“The risks and challenges faced by my country’s economic development have increased significantly since the beginning of this year, but the fundamentals of my country’s economy have not changed.” Ruan Jianhong said that since the epidemic, my country’s macro leverage ratio has increased significantly lower than other major economies. The increase in debt supports the rapid recovery of the economy. As the domestic epidemic prevention and control situation continues to improve, and the implementation of a package of policies and measures to stabilize the economy has accelerated, my country’s economy has shown a momentum of recovery, which creates conditions for maintaining a reasonable level of macro leverage in the future.
In the face of the current complex international and domestic economic and financial situation, Sun Tianqi, director of the Financial Stability Bureau of the People’s Bank of China, said that financial management departments must maintain a high degree of vigilance against various financial risks, further lay a good amount of advance in preventing and resolving financial risks, and firmly guard against the occurrence of the system. The bottom line on sexual financial risk.
He introduced that at present, my country’s financial risks are restrained and generally controllable, and 99% of banking assets are within the safe boundary. The financial sector will continue to reduce the number of high-risk financial institutions, and strive to reduce the number of high-risk financial institutions nationwide to less than 200 by the end of the “14th Five-Year Plan” period.
Zou Lan introduced that in the second half of the year, the People’s Bank of China will continue to implement a prudent monetary policy, accelerate the implementation of the determined policy measures, implement various structural monetary policy tools introduced earlier, enhance the ability of financial services to serve the real economy, and help stabilize The broader economy, stable employment and people’s livelihood.
[Editor in charge: Xu Dan]