China's broad money supply continues to grow thanks to various policy support, with M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 7.5 percent year on year to 309.71 trillion yuan (about 42.85 trillion U.S. dollars) at the end of October, according to the data released by the People's Bank of China on Monday.
This marked the growth of M2 for two consecutive months.
China has adopted a series of pro-growth policies, which have not only stabilized social expectations, but also boosted market confidence, accelerated capital flow, and improved market activity, experts said.
"The growth rate of M2 has steadily recovered, rising by a cumulative 1.2 percentage points over the past two months. Funds from the bond market and money management sector have started to flow back into deposits, while bank financing to non-bank financial institutions, such as securities and funds, has increased. Additionally, accelerated fiscal spending has led to a greater conversion of fiscal deposits into corporate deposits. All of these factors have contributed to the increase in M2, reflecting the growing influence of finance in supporting growth," said Dong Ximiao, chief researcher at Merchants Union Consumer Finance Company Limited.
China's yuan-denominated loans rose by 16.52 trillion yuan (about 2.3 trillion U.S. dollars) in the first 10 months of 2024, the data shows.
Outstanding yuan loans reached 254.1 trillion yuan (35.15 trillion U.S. dollars) at the end of October, an increase of 8 percent year on year, according to the data.
Data also shows that outstanding social financing stood at 403.45 trillion yuan (about 55.82 trillion U.S. dollars) at the end of October, up 7.8 percent year on year.
Despite a high base last year, social financing managed to maintain high growth -- reflecting the greater role of finance in supporting the real economy.
China's broad money supply continues to grow amid policy support
Chinese Foreign Minister Wang Yi said on Wednesday that the red line on protecting civilians in conflicts must not be crossed.
Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks in a phone conversation with Sheikh Abdullah bin Zayed Al Nahyan, deputy prime minister and foreign minister of the United Arab Emirates (UAE).
Abdullah briefed Wang on the regional situation and the UAE's position, saying the country is not a party to the war, has not participated in the current conflict, and should not be subjected to illegal attacks.
He expressed appreciation for China's consistent objective and impartial stance, adding that the UAE expects China to continue to play an active and important role in the current grave circumstances to prevent further escalation of regional tensions.
The UAE will continue to take measures to ensure the safety of Chinese personnel and institutions in the country, Abdullah said.
For his part, Wang reiterated China's principled position on the current situation in Iran, noting that the spillover of war serves no one's interests and that the people of the region would be the ones to suffer.
He stressed that non-military targets related to energy, economy and people's livelihoods should not be attacked, and that the security of shipping routes must be safeguarded.
Wang noted that the UAE had worked for peace even before the conflict broke out, and that a recent foreign ministers' meeting of the Gulf Cooperation Council emphasized that dialogue and diplomacy are the only way to overcome the current crisis and safeguard regional security, which China appreciates.
China backs the UAE's legitimate demands to safeguard its national security and supports countries in the region in their continued efforts to resolve disputes through diplomatic means, Wang said.
China will not give up hope for peace and will continue to play a constructive role, Wang said, adding that China will send its special envoy on the Middle East issue to the region to conduct mediation efforts to help bring the region back to peace and stability.
Wang also expressed hope that the UAE will continue to ensure the safety of Chinese citizens and institutions in the country.
Chinese FM says red line on protecting civilians in conflict must not be crossed
