China's total social financing maintained high growth in October, as various incremental financial policies are gradually taking effect, the country's central bank said on Monday.
The outstanding aggregate social financing stood at 403.45 trillion yuan (about 55.85 trillion U.S. dollars) at the end of October, up 7.8 percent year on year, according to data from the People's Bank of China.
Of the amount, outstanding yuan loans for the real economy reached 251.16 trillion yuan (about 34.77 trillion U.S. dollars), an increase of 7.7 percent year on year.
Specifically, new government bond issuance and bill financing rose significantly in the month.
"Aggregate social financing maintained a high growth in October despite the high base of last year. In the first three quarters, loan issuance from major financial institutions is estimated to exceed 110 trillion yuan (about 15.2 trillion U.S. dollars), which is nearly 8 trillion yuan (about 1.11 trillion U.S. dollars) higher than that in the same period last year. In the meantime, both repayment and issuance have grown rapidly, meaning the relocation of existing credit assets has made progress, and the efficiency of loan issuance has been further improved," said Dong Ximiao, chief researcher at Merchants Union Consumer Finance.
Since late September, a number of policies have been implemented, such as the cutting of reserve requirement ratio, interest rates, and mortgage rates on existing home loans, and the launch of a special re-lending facility to support the capital market, which have not only boosted market confidence, but also produced tangible results.
In October, the purchasing managers' index (PMI) for China's manufacturing sector bounced back to the expansion zone at 50.1 percent, according to data jointly released by China Federation of Logistics and Purchasing and National Bureau of Statistics (NBS).
The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs across eight major industries, reached 89 last month, 0.3 points higher than in September, according to a report from the China Association of Small and Medium Enterprises.
This growth rate marked the largest increase this year and the highest since March 2023, the association reported.
The central bank has vowed to step up support for stabilizing growth when making monetary policies.
"With the support of various incremental policies, social expectations and market confidence will continue to improve, and effective financing demand will rise further. Given some incremental policies remaining in the pipeline, and that it takes time to go through loan review, credit extension and money withdrawal, the policy effects will further spread in the future, and the financial support for the high-quality development of the real economy will be stronger and more effective," Dong said.
China’s aggregate financing maintains high growth in October
China’s aggregate financing maintains high growth in October
