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
