The People's Bank of China reported on Tuesday that bank lending in China saw a moderate increase throughout 2024. Loans denominated in yuan rose by CNY 18.09 trillion over the year. By the end of December, local currency loans amounted to CNY 255.68 trillion, marking a 7.6 percent rise.
In contrast, loans in foreign currencies fell by 17.4 percent year-over-year, totaling $542.2 billion. The combined balance of domestic and foreign currency loans reached CNY 259.58 trillion, reflecting an annual increase of 7.2 percent, according to the central bank.
The data also revealed that aggregate financing climbed to CNY 32.26 trillion in 2024, which was lower than the CNY 35.59 trillion recorded in 2023. Despite a rebound in broad credit growth last month, bank loan growth continued to reach historically low levels, according to economists at Capital Economics.
Looking ahead, economists anticipate that robust government bond issuance will persist in bolstering credit growth in the upcoming quarters. However, they noted that weak private demand is expected to constrain credit growth in the near future.
Regarding the money supply, the M2, a broad indicator, expanded by 7.3 percent at the end of December, aligning with projections. Meanwhile, the M1 measure decreased by 1.4 percent.
The material has been provided by InstaForex Company - www.instaforex.com
In contrast, loans in foreign currencies fell by 17.4 percent year-over-year, totaling $542.2 billion. The combined balance of domestic and foreign currency loans reached CNY 259.58 trillion, reflecting an annual increase of 7.2 percent, according to the central bank.
The data also revealed that aggregate financing climbed to CNY 32.26 trillion in 2024, which was lower than the CNY 35.59 trillion recorded in 2023. Despite a rebound in broad credit growth last month, bank loan growth continued to reach historically low levels, according to economists at Capital Economics.
Looking ahead, economists anticipate that robust government bond issuance will persist in bolstering credit growth in the upcoming quarters. However, they noted that weak private demand is expected to constrain credit growth in the near future.
Regarding the money supply, the M2, a broad indicator, expanded by 7.3 percent at the end of December, aligning with projections. Meanwhile, the M1 measure decreased by 1.4 percent.
The material has been provided by InstaForex Company - www.instaforex.com