China's yuan-denominated loans rose by 17.1 trillion yuan (about 2.35 trillion U.S. dollars) in the first 11 months of the year, central bank data showed on Friday.
The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 7.1 percent year on year to 311.96 trillion yuan (over 42 trillion U.S. dollars) at the end of November 2024, according to the People's Bank of China.
Outstanding yuan loans reached 254.68 trillion yuan (over 35 trillion U.S. dollars) at the end of November, an increase of 7.7 percent year on year. Meanwhile, outstanding social financing, a measurement of funds that individuals and non-financial firms receive from the financial system, stood at 405.6 trillion yuan (over 55 trillion U.S. dollars) at the end of November, up 7.8 percent year on year.
Key sectors demonstrated robust loan growth during the period: the balance of medium- and long-term loans to the manufacturing sector grew by 12.8 percent compared to last year; outstanding loans granted to "little giant" firms (those which use special and sophisticated technologies to produce novel and unique products) jumped by 13.2 year on year; outstanding inclusive loans for micro and small businesses recorded a 14.3 percent annual growth.
This growth highlighted an improving credit structure, with social expectations and market confidence showing signs of recovery, according to Zhang Jiqiang, Head of Research at Huatai Securities.
Interest rates for new loans continued to decline in November. The weighted average interest rate for newly issued corporate loans dropped to 3.45 percent, 36 basis points lower than the same period last year. The rate for new individual housing loans fell to 3.08 percent, down 92 basis points year-on-year.
China's just concluded Central Economic Work Conference pledged to adopt a moderately loose monetary policy next year. Wang Yifeng, deputy director of the Research Institute at Everbright Securities, noted that this policy stance is expected to provide substantial support for the real economy, with a greater focus on driving consumption and improving people's livelihoods.
China's yuan loans surge by 17.1 trillion yuan in first 11 months
China's yuan loans surge by 17.1 trillion yuan in first 11 months
Chinese Ambassador to the United States Xie Feng has said that underestimating China would be unwise, doomsaying about China is baseless, and any attempt to contain China is bound to fail.
Xie made the remarks when addressing the U.S.-China Business Council (USCBC) 2024 Gala Dinner in Washington, D.C. Wednesday night.
Xie said that the Chinese economy is on a generally steady, sound and upward trajectory.
Noting that China is fully capable of ensuring overall economic stability and forestalling risks, he said the high-quality development is moving forward with vigor in China, and there is great potential for the positive momentum to last.
The Chinese ambassador stressed that it is through braving wind and rain that the Chinese economy has come such a long way.
He said China is confident that it will accomplish this year's growth target. Next year, the country will carry out macroeconomic policies that are more proactive and impactful, and prevent and resolve risks in key areas and external shocks, he continued.
China will continue to be the top engine of global growth in the future and no force can muddy the waters or stop its surging, he said.
The Chinese ambassador noted that while protectionism is on the rise, China is as determined as ever to deepen reform comprehensively and expand high-standard opening up, to advance the sound and steady development of China-U.S. economic and trade relations, and to welcome international businesses, including American ones, to share in China's development opportunities.
"Attempts to weaponize tariffs would only cause one to isolate itself from other markets and lose out on opportunities. Building 'small yard, high fence' could not stifle innovation and would only constrain oneself. Shutting China out in the name of de-risking poses the real risk to global industrial and supply chains. And exploiting 'national security' as a convenient pretext for suppressing others is in itself causing insecurity. Only when China and the United States work together will both our countries and the world be safer and fare better," Xie said.
The U.S. Under Secretary of Commerce for International Trade Marisa Lago and U.S. Ambassador to China Nicholas Burns also delivered speeches at the event.
The event was attended by more than 500 guests, including Board Chair of USCBC Raj Subramaniam, President of USCBC Craig Allen, incoming USCBC President Sean Stein and former U.S. Trade Representative Susan Schwab.
Chinese ambassador to US says underestimating China unwise, doomsaying about China baseless
