Emerging sectors in China posted growing demands for loan as of September, according to the data released by People's Bank of China (PBOC) Monday, as the liquidity in the country's banking system increases following a slew of favorable monetary policies.
The data from PBOC, the central bank of China, showed that at the end of September, the M2, a broad measure of money supply that covers cash in circulation and all deposits, increased by 6.8 percent year over year to about 310 trillion yuan (over 43 trillion U.S. dollars).
In the first three quarters, loans in RMB increased by over 16 trillion yuan, the data showed. By late September, long and medium-term loans to China's high-tech manufacturing industry increased by 12 percent year over year. The loan issued to specialized and sophisticated enterprises posted an over 13-percent year-on-year growth. The weighted average interest rate of the newly released individual housing loans stood at a low level of slightly above 3 percent, 78 basis points lower than the same period of last year.
"Traditional sectors like the property sector and the regional financing platforms showed decreased demand for loans. With the new growth momentums, like the green development and the technological innovation, taking shape at a faster pace, the structure of loan has been improving, which will further increase support for the strategic, key and weak sectors," said Dong Ximiao, chief researcher of the Merchants Union Consumer Finance Company Limited.
In September, PBOC has rolled out a slew of policies aimed at keeping liquidity in the banking system reasonable and ample. It cut the interest rate of the seven-day reverse repos by 0.2 percentage points to 1.5 percent and reducing the reserve requirement ratio (RRR) by 0.5 percentage points. A further cut of RRR by 0.25 to 0.5 percentages is also possible within this year, PBOC said.
"As the growth of domestic demand slows, these monetary policies on counter-cyclical adjustments are set to produce real supports and achieve a steady economic growth," said Wen Bin, chief economist of Minsheng Bank.
Loans to China's emerging sectors grow amid increased liquidity in banking system
Macao has been emerging as a global hub for conventions and exhibitions in recent years by exploring the enormous opportunities in the sector, driving the region to advance its economic diversification and embrace a brighter future.
Macao has received many awards this year, such as the Best Convention City (Asia) and the Best BT-MICE City, showcasing the recognition for and influence of Macao's exhibition industry.
More than 1,000 electronic game enthusiasts from all over the world gathered recently in Macao to participate in a esports themed event.
Su Zhili, organizer of the event, said that Macao's rich experience in hosting large-scale events, coupled with its good infrastructure, has driven him to choose the region as an ideal destination to hold such an activity.
"Macao has held many similar large-scale events. It has rich experience, and the facilities at the venue are relatively mature, so we can start our work comfortably," said Su.
During the first three quarters of 2024, Macao held more than 1,000 conferences and exhibitions in total.
"We will invite more professional, special conferences to be held in Macao and also cultivate more exhibition brands with international influence in Macao, so as to promote Macao's exhibitions to be more market-oriented, professional, international, digital and greener from various aspects. This is our goal," said Elaine Wong, member of the Macao Commerce and Investment Promotion Institute.
In addition, multiple large exhibitions and conferences, such as the Macao International Trade and Investment fair, the Macao Franchise Expo, and the International Infrastructure Investment and Construction Forum, are held regularly in Macao.
With the introduction of a series of policies and measures to facilitate the exchanges between the mainland and Macao, as well as the construction and development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Macao's convention and exhibition industry will embrace more opportunities for development in the foreseeable future.
"We have such a good industrial base in the Greater Bay Area. The mode of 'Convention and Exhibition + Industry' not only integrates the industries of Macao, but also the industries of the Greater Bay Area. In addition, Macao actively integrates into the national development and plays a role in the Belt and Road. Why are we so confident in Macao's convention and exhibition sector? Because it is backed by the motherland, and the country gives Macao great support," said Alan Ho, chairman of the Macao Association of Convention, Exhibition and Tourism Sectors.
Macao emerges as global hub for conventions and exhibitions, driving economic diversification and international recognition
