New loans exceeded 10 trillion in four months before monetary policy took effect
According to the latest data released by the People’s Bank of China, RMB loans increased by 10.19 trillion yuan in the first four months of the year, with the cumulative increase in social financing scale reaching 12.73 trillion yuan. The balance of broad money (M2) at the end of April stood at 301.19 trillion yuan, marking a year-on-year increase of 7.2%.
Industry experts have noted that the pace of credit lending has become more stable and moderate, with an optimized credit structure. Financial support has remained stable despite the increased monetary policy controls since the beginning of the year. Looking ahead, the virtuous economic and financial cycle is expected to continue, with the central bank adjusting policies in response to changing circumstances.
In April alone, RMB loans increased by 730 billion yuan, demonstrating a year-on-year increase of 11.2%. This steady growth in credit issuance has been seen as meeting the reasonable financing needs of the real economy. The credit structure has also been improving, with loans to enterprises and institutions increasing by 8.63 trillion yuan in the first four months.
The completion of the “Five Big Articles” has become a focal point for financial services to support the real economy. The central bank’s efforts to facilitate technological innovation and transformation, along with inclusive small and micro loans, have contributed to the overall growth in social financing.
Despite the year-on-year increase in social financing, the M2 growth rate has slowed down slightly. Industry insiders attribute this to the stabilization of the epidemic and the development of direct financing. They anticipate that the growth rate of M2 will continue to moderate in the future, reflecting an optimization of the financing structure and the satisfaction of the real economy’s financing needs.
Looking ahead, industry experts believe that macroeconomic policies will continue to have a positive impact on the economy. The central bank is expected to maintain a prudent monetary policy stance and adjust regulations based on evolving economic conditions to support continued economic recovery.
It is important to note that the information provided in this article is for informational purposes only and does not constitute investment advice. Readers are advised to make their decisions at their own risk.
(Source of article: Economic Information Daily)