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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

      Russia shoots down Ukrainian drones; Ukraine continues defensive operations in Kursk

      2025-03-18 04:14 Last Updated At:06:17

      Russia announced on Monday that its forces shot down dozens of Ukrainian drones in the Kursk region, while Ukraine reported that its forces were conducting defensive operations as planned in Kursk.

      The Russian Defense Ministry specified in a statement that from 18:20 Sunday to 07:00 Monday, its air defense system shot down a total of 72 Ukrainian drones in many locations, including 36 over the Kursk Oblast.

      The General Staff of the Ukrainian Armed Forces reported on Monday morning that a total of 112 battles had taken place in frontline areas in the past 24 hours, including 14 battles in the Kursk region.

      In a media interview on Sunday, Ukrainian Defense Minister Rustem Umerov said that Ukraine was carrying out defensive operations in the Kursk region as planned, and the information that thousands of Ukrainian troops were surrounded was "incorrect."

      The Ukrainian National News Agency reported on Sunday that Ukrainian forces had withdrawn from Sudzha, a border city in the southwest of Kursk Oblast, less than 10 kilometers away from Sumy Oblast, Ukraine. The Ukrainian army used Sudzha as a major logistics hub to provide supplies to troops in nearby villages and towns.

      According to Russian media reports, the Ukrainian forces are still attacking Sudzha and surrounding areas with artillery and drones, in order to cover the withdrawal of the remaining troops.

      Russia shoots down Ukrainian drones; Ukraine continues defensive operations in Kursk

      Russia shoots down Ukrainian drones; Ukraine continues defensive operations in Kursk

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