Financial sector bolsters real economy in first seven months: expert

China's financial sector maintained stable growth in July, with increased credit flowing to key economic areas and government bond issuance boosting the expansion of social financing, reflecting ongoing efforts to support the real economy, according to an expert.

Data released by the People's Bank of China on Tuesday showed that in the first seven months of the year, the growth rate of broad money supply (M2) and social financing both picked up, with the financial sector continuing to channel resources into critical and vulnerable sectors of the economy.

By the end of July, the balance of broad money (M2) -- a measure that includes cash in circulation and all deposits -- stood at 303.31 trillion yuan (over 42 trillion U.S. dollars), up 6.3 percent year on year and 0.1 percentage point higher than the previous month, indicating ample liquidity in the system.

The outstanding balance of social financing -- a measurement of funds that individuals and non-financial firms receive from the financial system -- reached 395.72 trillion yuan (over 55 trillion U.S. dollars) at the end of July, an 8.2 percent increase year on year and a 0.1 percentage point rise from June, aligning closely with expected economic and social growth targets.

Meanwhile, renminbi loans to the real economy totaled 247.85 trillion yuan (about 35 trillion U.S. dollars), marking an 8.3 percent year-on-year increase.

"The overall financial growth was largely stable in July, with the month-end growth rate closely mirroring that of June. The scale of social financing maintained a reasonable upward trend, showing the financial sector's continued commitment to supporting the real economy. A breakdown of the data shows that net financing from government bonds reached around 700 billion yuan (about 98 billion U.S. dollars) in July, approximately 290 billion yuan (about 41 billion U.S. dollars) more than the same period last year, significantly contributing to the steady growth of social financing. We have also observed an acceleration in the issuance of special bonds and a quicker rollout of ultra-long-term special government bonds," said Dong Ximiao, chief researcher of Merchants Union Consumer Finance Company Limited.

Credit resources have increasingly flowed into key and vulnerable areas of the economy.

By the end of July, medium- and long-term loans to the manufacturing sector had risen by 16.9 percent year on year. Loans to high-tech manufacturing, specialized and innovative enterprises, and micro and small enterprises grew by 15.5 percent, 15 percent, and 17 percent, respectively, outpacing the overall loan growth rate during the same period.

"Since the beginning of this year, financial institutions have been proactively revitalizing existing loans and enhanced the efficiency of capital utilization. By recovering inefficient loans and reallocating them to new growth areas, they have significantly optimized the structure of existing loans. Currently, the positive effects of earlier policies are gradually becoming evident, driving a recovery and rebound in effective demand. With the ongoing recovery in consumption, the economic cycle is expected to smooth out, likely generating new effective financing demand," Dong said.

Financial sector bolsters real economy in first seven months: expert

Peace talks on the settlement of the Russia-Ukraine conflict require equality, autonomous negotiators and trust, said Belarusian Defense Minister Viktor Khrenin on Friday, on the sidelines of the 11th Beijing Xiangshan Forum, which was held from Thursday to Saturday.

Khrenin talked about the military relations between Belarus and China, and the Ukraine issue.

Before attending the second plenary session of the forum, Khrenin said he hoped to expound Belarus' views and positions on the international situation in an exclusive interview with China Central Television (CCTV).

"I hope to expound our views and position on the increasingly complex situation, globally on the whole or just about Belarus. I want to expound our views on how the international community develops and how all parties seek common ground," he said.

Noting that China and Belarus have strengthened military cooperation since they established diplomatic ties 32 years ago, Khrenin said he was deeply impressed with the "Eagle Assault 2024" joint exercise between the two countries in July this year.

"I noticed some details in the exercise, and what's the most important is that the Chinese and Belarusian servicemen in one group and one operation didn't need any translator but could understand each other. It shows that our armies share tacit understanding, which is very important," he said.

Khrenin also recalled the moment that the guard of honor of the Chinese People's Liberation Army participated in the parade marking the 80th anniversary of Belarus' liberation from Nazi invaders.

"I thank Chinese leaders for dispatching troops to Belarus on the occasion of such an important festival. The Belarusian people warmly welcomed them just like greeting their family members," he said.

Khrenin also explained why Belarus has decided to establish a system against unmanned aerial vehicles.

"The Ukraine crisis has shown how modes of operation and forms of war are changing, so we are in full swing to work in this direction because we know such weapons may target us too," he said.

With the Ukraine crisis entering its third year, Khrenin put forward three conditions for resolving the Russia-Ukraine conflict through peace talks.

"It is a pity that we haven't seen any sign of the easing of the Russia-Ukraine conflict, but we can see that it is not Ukraine's independent decision. Of course, the main beneficiary in the conflict is the West, especially the United States who does not want to lose its hegemony. However, they don't understand that the current world has become multipolar, so it is always possible to resolve conflict through peace talks. Meanwhile, rigid conditions are needed to conduct such negotiations today. One of the important conditions is equality, the second is the autonomy of negotiators, which Ukraine doesn't have yet, and the third is trust," he said.

Initiated in 2006, the Beijing Xiangshan Forum is a high-level security and defense forum in the Asia-Pacific region with significant international influence.

Peace talks on Russia-Ukraine conflict need equality, autonomous negotiators, trust: Belarusian defense minister