The latest data from the People's Bank of China (PBOC) indicates that social financing grew rapidly in the first two months of this year, providing increased support for the real economy.
As of the end of February, China's total social financing stock reached 417.29 trillion yuan (57.61 trillion U.S. dollars), an 8.2 percent increase from the previous year, according to central bank data released on Friday.
M2, a broad measure of the money supply that includes cash in circulation and all deposits, rose 7 percent year-on-year to approximately 320.52 trillion yuan by the end of last month. In the first two months of 2025, China issued 6.14 trillion yuan in new yuan-denominated loans.
"Overall, the total volume of financing continues to grow at a reasonable pace, reflecting a moderately accommodative monetary policy stance. The increase in loans in February remained at a historically high level, providing strong support for the real economy," said Wen Bin, chief economist at China Minsheng Bank.
The credit structure also saw vigorous development in several aspects. In February, the outstanding balance of inclusive loans to small and micro enterprises (SMEs) and medium-and long-term loans to the manufacturing sector increased by 12.4 percent and 10.3 percent year-on-year, respectively -- both outpacing the overall loan growth rate during the same period.
In Meishan City, southwest China's Sichuan Province, local banks are leveraging companies' tax data and electricity consumption to calculate credit lines in real time, enabling SMEs to quickly secure loans without collateral. One local company obtained a 1.5 million yuan unsecured loan in just three days.
"With ample financial support, we swiftly carried out the digital upgrade of our production line, increasing production capacity by 50 percent compared to pre-upgrade levels," said Xu Wei, production manager at Sichuan Sanyi Electronic New Material Co., Ltd.
"The new loan model has enabled 'data to run errands instead of enterprises.' Since the beginning of this year, it has supported an 18.71 percent year-on-year increase in loans to small, medium, and micro enterprises," said Jiang Chenglin, director of the Meishan branch of the National Financial Regulatory Administration.
To support investment and financing in scientific and technological innovation, promote consumption, and stabilize foreign trade, the PBOC will also explore and develop new structural policy tools to provide stronger and more effective support for the recovery and high-quality development of the real economy.
China's social financing grows, boosting real economy
