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China's social financing grows, boosting real economy

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      China

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      China's social financing grows, boosting real economy

      2025-03-15 22:30 Last Updated At:03-16 17:07

      The latest data from the People's Bank of China (PBOC) indicates that social financing grew rapidly in the first two months of this year, providing increased support for the real economy.

      As of the end of February, China's total social financing stock reached 417.29 trillion yuan (57.61 trillion U.S. dollars), an 8.2 percent increase from the previous year, according to central bank data released on Friday.

      M2, a broad measure of the money supply that includes cash in circulation and all deposits, rose 7 percent year-on-year to approximately 320.52 trillion yuan by the end of last month. In the first two months of 2025, China issued 6.14 trillion yuan in new yuan-denominated loans.

      "Overall, the total volume of financing continues to grow at a reasonable pace, reflecting a moderately accommodative monetary policy stance. The increase in loans in February remained at a historically high level, providing strong support for the real economy," said Wen Bin, chief economist at China Minsheng Bank.

      The credit structure also saw vigorous development in several aspects. In February, the outstanding balance of inclusive loans to small and micro enterprises (SMEs) and medium-and long-term loans to the manufacturing sector increased by 12.4 percent and 10.3 percent year-on-year, respectively -- both outpacing the overall loan growth rate during the same period.

      In Meishan City, southwest China's Sichuan Province, local banks are leveraging companies' tax data and electricity consumption to calculate credit lines in real time, enabling SMEs to quickly secure loans without collateral. One local company obtained a 1.5 million yuan unsecured loan in just three days.

      "With ample financial support, we swiftly carried out the digital upgrade of our production line, increasing production capacity by 50 percent compared to pre-upgrade levels," said Xu Wei, production manager at Sichuan Sanyi Electronic New Material Co., Ltd.

      "The new loan model has enabled 'data to run errands instead of enterprises.' Since the beginning of this year, it has supported an 18.71 percent year-on-year increase in loans to small, medium, and micro enterprises," said Jiang Chenglin, director of the Meishan branch of the National Financial Regulatory Administration.

      To support investment and financing in scientific and technological innovation, promote consumption, and stabilize foreign trade, the PBOC will also explore and develop new structural policy tools to provide stronger and more effective support for the recovery and high-quality development of the real economy.

      China's social financing grows, boosting real economy

      China's social financing grows, boosting real economy

      Next Article

      Hangzhou's upgraded power system speeds up industrial projects

      2025-03-16 16:16 Last Updated At:16:47

      Hangzhou’s upgraded power system in east China's Zhejiang Province is prioritizing efficiency, enabling enterprises to expedite production and enhancing support for new project developments.

      At a project construction site in Hangzhou, the power supply facilities for the project were already in place before the foundation piling work began.

      "Our project was registered by the government last August, and a day later, a power company actively contacted us to build temporary electricity for construction. The installation of electricity for the construction was completed in less than a month," said Zhou Bo, leader of the Hangzhou Nanhu Sci-tech Achievement Transformation Project.

      At the State Grid Hangzhou Power Supply Company's marketing service center, a power service control platform provides data on record times and planned power connection schedules.

      "In the past, we only received the demand after the enterprise applied for electricity. Now, after accessing the whole life-cycle management platform for government-invested projects, we can take the initiative to contact enterprises to provide power connection services as soon as the government establishes a project," said Wu Mengyao, director of the marketing service center at the State Grid Hangzhou Power Supply Company.

      After the power demand of major projects is documented on this platform, a work schedule will be generated to monitor the power grid supporting these projects in real time.

      In response to the anticipated growth in electricity demand due to future industrial development, local investment and infrastructure construction have also been expanded.

      Hangzhou's upgraded power system speeds up industrial projects

      Hangzhou's upgraded power system speeds up industrial projects

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