Yuan-denominated loans in China surged by 14.43 trillion yuan (approximately USD 2 trillion) during the first eight months of 2024, according to data released by the People’s Bank of China on Friday.
The increase reflects strong credit growth, a key indicator of the nation’s ongoing economic recovery and financial activity.
Data from Xinhua News Agency further revealed that the M2 money supply—a comprehensive measure that includes cash in circulation and all types of deposits—expanded by 6.3% year-on-year, reaching a total of 305.05 trillion yuan by the end of August. This growth in M2 signifies increased liquidity in the financial system, which is essential for fueling economic activity and sustaining growth.
Analysts point out that the steady rise in yuan loans, along with the broader money supply growth, aligns with China’s efforts to support its economic recovery through monetary easing and credit expansion. The trend indicates that both corporate and individual borrowing are rising, supported by favorable loan conditions offered by banks.
The financial growth data also signals that China’s central bank is likely focused on maintaining stability in its monetary policy while balancing economic recovery and inflation concerns.
These figures underscore the critical role of China’s banking system in supporting the nation’s economic objectives, particularly during a period of global uncertainty and domestic restructuring.
