New RMB loans hit a new high in 2023, financial support for the real economy continues to increase
The 2023 financial statistics were released on January 12, revealing significant increases in RMB loans and social financing scale. Throughout 2023, RMB loans increased by 22.75 trillion yuan, a year-on-year increase of 1.31 trillion yuan. Additionally, the cumulative increase in social financing scale was 35.59 trillion yuan, 3.41 trillion yuan more than the previous year. Furthermore, as of the end of December 2023, the balance of broad money (M2) was 292.27 trillion yuan, showing a year-on-year increase of 9.7%.
In December 2023, the monthly data indicated that RMB loans increased by 1.17 trillion yuan, with a decrease of 240.1 billion yuan year-on-year. The increase in social financing scale was 1.94 trillion yuan, 616.9 billion yuan more than the same period the previous year.
Analysts predict that the financial market will operate smoothly throughout 2023, with a reasonable and sufficient liquidity and a stable and declining financing costs for the real economy. According to Dong Ximiao, chief researcher of China Merchants Union, monetary policy will intensify countercyclical adjustments in 2023, aiming to better meet the effective credit needs of the real economy. This will create a suitable monetary and financial environment for the overall improvement of the economy.
Additionally, financial institutions reported a record high in new credit, with new credit by financial institutions hitting a new peak in 2023. Monetary policy has effectively encouraged financial institutions to increase support for the real economy.
Analysts believe that with the strong support of the “real money” in the financial system, my country’s economy has shown continued improvement and market expectations and confidence have steadily increased. The Central Economic Work Conference has set the tone for this year’s monetary policy, emphasizing the need for it to be flexible, appropriate, precise, and effective.
Pang Ming, chief economist of Jones Lang LaSalle Greater China, has expressed optimism for the next stage of monetary policy, stating that even if unexpected challenges and changes occur, my country’s monetary policy still has sufficient policy space.
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