China's March financial data shows robust growth, strong backing for real economy

China's central bank on Sunday reported steady growth in key financial indicators for March, reflecting the country's moderately accommodative monetary policy and strong support for the real economy.

China issued 9.78 trillion yuan (1.36 trillion U.S. dollars) in new yuan-denominated loans in the first three months of 2025, central bank data showed on Sunday.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased by 7 percent year on year to 326.06 trillion yuan at the end of last month, according to the People's Bank of China.

At the end of March, outstanding yuan loans amounted to 265.41 trillion yuan, up 7.4 percent year on year, and the total social financing stock in China reached 422.96 trillion yuan, marking an 8.4 percent increase from the previous year.

According to Zhang Jiqiang, director of the Huatai Securities Research Institute, the growth in lending was primarily driven by increased demand from businesses, rapid growth in individual housing loans, and positive momentum in consumer loans.

Interest rates remained at historically low levels, according to the data. The weighted average interest rate on new corporate loans was around 3.3 percent in March, down 45 basis points year-on-year, while the rate on new individual housing loans was around 3.1 percent, down 60 basis points.

This data also indicates that lending is increasingly directed towards supporting small and micro enterprises and the manufacturing sector, key drivers of economic growth. Inclusive finance loans to small and micro businesses reached 34.81 trillion yuan, up 12.2 percent year on year. Medium- and long-term loans to the manufacturing sector grew by 9.3 percent year on year to reach 14.8 trillion yuan.

With the credit structure being optimized, Wen Bin, chief economist at China Minsheng Bank is bullish on the continued support for financing growth.

He said the recent announcement by the Ministry of Finance to issue the first batch of 5 trillion yuan in special treasury bonds to bolster the core tier 1 capital of large state-owned banks is expected to leverage an additional 40 trillion yuan in new loans.

China's March financial data shows robust growth, strong backing for real economy

China's central bank will take further steps to facilitate cross-border financial services for multinational companies, according to a senior official at the national financial authority on Monday.

At a press conference in Beijing, Wang Xin, head of the Research Bureau of the People's Bank of China (PBOC), announced that the bank will work to improve cross-border settlement efficiency and support national-level financial pilot projects, including fintech innovations for capital markets.

Additionally, as part of its efforts, the PBOC will strengthen ties with international financial organizations and institutions, attracting more overseas insurance companies, sovereign wealth funds, pension funds, environmental, social, and governance (ESG) funds, and other entities to provide investment, financing, and technical services for green projects, according to Wang.

"The PBOC will enhance financial support for coordinated regional development. For example, a New International Land-Sea Trade Corridor Fund will be established in Chongqing to help set up a financial services center for the corridor in the municipality. The digital RMB pilot initiative will also be launched in Chongqing under the China-Singapore Strategic Connectivity Demonstration Project. Additionally, a collaboration mechanism for credit information sharing will be established with Singaporean financial institutions, along with a cross-border credit reporting platform," said Wang.

China's central bank to strengthen support for cross-border financial services