China’s total social financing stock reached 433.66 trillion yuan (about 60.92 trillion U.S. dollars) at the end of August, an 8.8 percent year-on-year increase, according to data from the People’s Bank of China (PBOC).
The figures reflect sustained financial support for the real economy amid coordinated fiscal and monetary policy measures.
Outstanding yuan loans to the real economy stood at 265.42 trillion yuan, up 6.6 percent year on year, accounting for 61.2 percent of the total social financing stock.
In the first eight months, social financing increased by 26.56 trillion yuan, 4.66 trillion yuan more than the same period last year.
Broad money supply (M2) rose 8.8 percent to 331.98 trillion yuan, while M1 climbed 6 percent to 111.23 trillion yuan. Cash in circulation (M0) increased 11.7 percent to 13.34 trillion yuan.
Economist Wen Bin said proactive fiscal policy and appropriately accommodative monetary policy have jointly boosted financing, with narrowing gaps between M1 and M2 supporting consumption and investment.
"This year, proactive fiscal policies and appropriately accommodative monetary policies have worked in synergy. Meanwhile, government bond issuance has been front-loaded and intensified, leading to a cumulative financing increment that consistently exceeds that of the same period last year, providing strong support for the real economy. Additionally, the narrowing difference between M1 and M2 indicates that more funds have been converted into demand deposits, facilitating economic activities such as consumption and investment," said Wen, chief economist at China Minsheng Bank.
China's social financing rises to 433.66 trillion yuan as of August: PBOC data
China's social financing rises to 433.66 trillion yuan as of August: PBOC data
