CFIC Introduction
◆At the end of August, the balance of RMB loans in mainland China was 252.02 trillion yuan, a year-on-year increase of 8.5%; the stock of social financing was 398.56 trillion yuan, a year-on-year increase of 8.1%; The balance of broad money (M2) was 305.05 trillion yuan, a year-on-year increase of 6.3%.
Original title: [Xinhua Interpretation] Steady Growth of Loans to Support Economic Transformation and Upgrading - Interpretation of Financial Data in August People's Bank of China released financial statistics for August on the 13th, while loans maintained stable growth, loan interest rates were at a historically low level, and liquidity remained reasonable and abundant...... What do you think about the changes in financial data in August? What are the main areas where credit funds are flowing? According to the financial statistics released on the same day, at the end of August, the balance of RMB loans in mainland China was 252.02 trillion yuan, a year-on-year increase of 8.5%; the stock of social financing was 398.56 trillion yuan, a year-on-year increase of 8.1%; The balance of broad money (M2) was 305.05 trillion yuan, a year-on-year increase of 6.3%. The person in charge of the relevant department of the People's Bank of China said that the recent growth rate of M2 balance is relatively stable, and the growth rate of the balance of the two indicators of social financing scale and RMB loans in August was above 8%. In the context of accelerating structural transformation, financial data still maintained steady growth on a high base, and the support for the real economy was solid. Wen Bin, chief economist of China Minsheng Bank, believes that the new loans in August were about 900 billion yuan, a year-on-year decline, but from the perspective of the overall investment in the first eight months, the growth of loans remained basically stable, and the support of bill financing channels continued to increase. According to the data, bill financing in August continued the growth trend in July, with an increase of 759.7 billion yuan in the first eight months. The reporter learned that with the decline in bill interest rates, the cost of bill financing for small and medium-sized enterprises has been reduced accordingly, which has stimulated the demand for bill financing, and the discounted bills in the bank balance sheet reached 13.9 trillion yuan at the end of August, which is an important channel to support the real economy. Where does the credit money go? According to the data, in the first eight months, the loans of mainland enterprises (institutions) increased by 11.97 trillion yuan, and enterprises are still the majority of new loans. Among them, medium and long-term loans increased by 8.7 trillion yuan, accounting for more than 70%. The responsible person of the relevant department of the People's Bank of China said that more credit resources will flow to major strategies, key areas and weak links, which will strongly support the accelerated optimization of the economic structure. According to the data, at the end of August, the balance of medium and long-term loans in the manufacturing industry was 13.69 trillion yuan, a year-on-year increase of 15.9%, of which the balance of medium and long-term loans in the high-tech manufacturing industry increased by 13.4% year-on-year; the balance of loans to small and medium-sized technology-based enterprises was 3.09 trillion yuan, a year-on-year increase of 21.2%; the balance of loans to specialized, special and new enterprises was 4.18 trillion yuan, a year-on-year increase of 14.4%; The balance of inclusive small and micro loans was 32.21 trillion yuan, a year-on-year increase of 16%. The growth rate of these loans was higher than that of all loans in the same period. Ming Ming, chief economist of CITIC Securities, said that the loan demand index and loan growth rate are now declining in the same direction, indicating that credit growth has shifted from supply-side constraints to demand-side constraints. In the next step, banks should dig deep into the loan demand in new kinetic energy areas such as scientific and technological innovation, advanced manufacturing, and green development, and increase project reserves. Since the beginning of this year, the scale of social financing has grown steadily, among which the relevant data of bond financing have performed outstandingly, providing diversified support for the transformation and upgrading of the real economy. Data show that in the first eight months of this year, the net financing of corporate bonds was 1.78 trillion yuan, an increase of 203.1 billion yuan year-on-year. From January to July, enterprises across the country issued a total of 8.4 trillion yuan of bonds, an increase of 574.8 billion yuan year-on-year. In July, the weighted average issuance rates of AAA-rated, AA+-rated and AA-rated corporate bonds were 2.18%, 2.44% and 2.65% respectively, providing low-cost financing support for enterprises. The reporter learned that in the next step, the People's Bank of China will support enterprises to expand diversified financing channels and promote the continuous growth of green bonds and scientific and technological innovation enterprise bonds. Accelerate the formulation of the overall plan of the five major articles of finance, as well as digital finance and pension finance policies, form a "1+N" policy system, introduce more incentive policies and tools, and more effectively support high-quality economic development. Interest rates continued to fall at low levels in August. Data from the People's Bank of China showed that the weighted average interest rate on new corporate loans was 3.57% in August, 8 basis points lower than the previous month and 28 basis points lower than the same period last year; The interest rate on newly issued inclusive small and micro loans was 4.48%, 8 basis points lower than the previous month and 34 basis points lower than the same period last year. The interest rate on new personal housing loans was 3.35%, 5 basis points lower than the previous month and 78 basis points lower than the same period last year, both at historical lows. "The decline in the interest rate of loans for enterprises and residents is conducive to reducing the interest burden of business entities and releasing the potential of consumption and investment." Wen Bin said that since the beginning of this year, the interest rate level of the mainland has remained at a historical low, and the monetary policy has provided solid support to the real economy. The responsible person of the relevant department of the People's Bank of China said that the People's Bank of China will adhere to a supportive monetary policy stance and create a good monetary and financial environment for the economic recovery. Monetary policy will be more flexible, moderate, precise and effective, increase regulation and control, and start to launch some incremental policy measures. We will continue to strengthen the coordination and cooperation of macroeconomic policies, focus on expanding domestic demand, promote industrial upgrading, and support aggregate supply and aggregate demand to achieve a dynamic balance at a higher level.
Source: Xinhua News Agency
Authors: Wu Yu, Ren Jun
WeChat editor: Wang Qian
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