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

A survey released by CGTN to global netizens shows that respondents strongly condemn the U.S.'s unilateral bullying of other countries under the pretext of "reciprocal tariffs," saying that this move may trigger countermeasures from other countries and eventually evolve into a "tariff world war," seriously impacting the world economy.

The U.S. claims that it has suffered losses in international trade and is raising tariffs on all trading partners under the pretext of "reciprocity," aiming to reduce the trade deficit. However, 81.03 percent of global respondents do not agree with this, believing that such measures will not achieve the expected results. During his first term in office, U.S. President Donald Trump imposed tariffs on major trading partners. According to statistics from the American Action Forum, a think tank, Trump's protectionist policies during the first term cost U.S. consumers about 57 billion U.S. dollars annually. According to the survey, 81.94 percent of respondents believe that "reciprocal tariffs" cannot solve U.S.'s own problems but will only harm the interests of U.S. consumers and drag down the U.S. economic growth.

The competitiveness of products from different countries varies. Each country can set appropriate tariffs based on its own products to achieve "mutual benefit" in the international market. The "tariff farce" of the U.S. side is a selective disregard for the balance of interests reached through multilateral trade negotiations. Some 82.8 percent of the respondents point out that in the context of unequal economic development and economic strength of different countries, the U.S. insistence on full and complete reciprocity in tariffs is extremely irrational.

The majority of the U.S. tariffs this time are targeted at developing countries. Regarding this, 82.96 percent of the respondents condemn the U.S. for conducting "indiscriminate attacks" on other countries on the issue of tariffs, believing that this is a deprivation of the development rights of other countries, especially developing countries. According to the survey, 84.43 percent of the respondents believe that the U.S.'s imposition of "reciprocal tariffs" will exacerbate the problem of trade unfairness with its trading partners and traditional allies, seriously damaging the country's credibility.

As a member of the World Trade Organization (WTO), the U.S. has unilaterally and subjectively introduced so-called "reciprocal tariffs" and insisted on implementing them. This is a typical act of unilateral bullying. In response, 79.47 percent of the respondents criticize the U.S. for seriously violating the rules of the WTO. In the survey, 79.58 percent of the respondents say that "reciprocal tariffs" have become a new tool for the U.S. to promote trade protectionism, which will further intensify international trade tensions and global economic fragmentation.

This survey was released on CGTN's English, Spanish, French, Arabic and Russian platforms. Within 24 hours, a total of 9,600 overseas netizens participated in the survey and expressed their views.

CGTN poll: US 'reciprocal tariffs' draw condemnation from world