Sign in
  • Home
  • About
  • Research
  • Banking
  • Economy
  • Finance
  • Fintech
  • Opinion
  • Sponsored
Sign in
Welcome!Log into your account
Forgot your password?
Password recovery
Recover your password
Search
Logo
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
Saturday, February 4, 2023
Sign in / Join
  • Home
  • About
  • Research
  • Banking
  • Economy
  • Finance
  • Fintech
  • Opinion
  • Sponsored
Facebook
Twitter
Logo
  • Home
  • About
  • Research
  • Banking
  • Economy
  • Finance
  • Fintech
  • Opinion
  • Sponsored
Home Banking Total Social Financing Rises 12.5% YoY in May as “Loose Credit” Conditions...
  • Banking
  • Economy

Total Social Financing Rises 12.5% YoY in May as “Loose Credit” Conditions Emerge in China

By
CBNEditor
-
June 11, 2020
605
Facebook
Twitter
WhatsApp
Linkedin

    The latest data on China’s monetary system points to a sizeable rise in credit extension in May, with one analysts referring to it as the start of a “loose credit” era.

    Figures released by the Chinese central bank indicate that total social financing (TSF) hit 268.39 trillion yuan (approx. USD$38.01 trillion) at the end of May, for a YoY rise of 12.5%.

    TSF refers to the ag­gre­gate vol­ume of funds pro­vided by Chi­na’s do­mes­tic fi­nan­cial sys­tem to the pri­vate sec­tor of the real econ­omy within a given time­frame.

    Central bank data indicates that TSF saw an expansion of 3.9 trillion yuan in the month of May, as compared to 3.09 trillion yuan in April.

    Li Yiju (李义举), from form the Bank of China (BOC), said that the rise in TSF had mainly been driven by renminbi loans, government bonds and enterprise bonds.

    May saw the extension of 1.55 trillion yuan in new loans to the real economy, for an increase of 364.7 billion yuan for the same period last year.

    Net government bond financing was 1.14 trillion yuan, for a YoY expansion of 750.5 billion yuan, while net enterprise bond financing was 297.1 billion yuan, for a YoY expansion of 193.8 billion yuan.

    Figures from the Ministry of Finance indicate that 1.3 trillion yuan in local government bonds were issued in May, for record-high single month issuance.

    “This plus sovereign bonds, standard bonds, the rapid growth in net financing via government bonds, drove comparatively rapid growth in total social financing,” said Dong Ximiao (董希淼), researcher with XW Bank.

    According to Dong the increase points to accelerated resumption of work and production by enterprises following the effective containment of COVID-19, as well as the recovery of the Chinese economy.

    Dong said it is also significant of expansion in support of the real economy by financial institutions in China, and the accelerated creation of “loose credit” conditions.

    Related stories

    Ex-PBOC Deputy Gov­er­nor Calls for Ma­jor Changes to To­tal So­cial Fi­nanc­ing

    Chi­nese Cen­tral Bank Says New Mon­e­tary Pol­icy Tools Are not a Form of Quan­ti­ta­tive Eas­ing

    Chi­nese Cen­tral Bank Will Strengthen Counter-cy­cli­cal Mon­e­tary Pol­icy Ad­just­ments, Keep Liq­uid­ity “Ra­tio­nally Am­ple”

    Chi­na’s Mon­e­tary Pol­icy Com­mit­tee Con­venes 1st Quar­ter Meet­ing, Calls for “Tar­geted Ir­ri­ga­tion”

    Facebook
    Twitter
    WhatsApp
    Linkedin
      CBNEditor

      RELATED ARTICLESMORE FROM AUTHOR

      Chinese Banks Expected to See Wave of Advance Mortgage Repayments Following Interest Rate Declines

      China’s Digital Economy Expected to Exceed 60 Trillion Yuan by 2025

      Xi Jinping Calls for New Growth Conditions, Deeper Reform and Opening, Removal of Foreign Tech Dependence in 2023

      Subscribe to China Banking News for free updates

      Search

      ABOUT US

      China Banking News covers all the latest news and development in the Chinese finance and fintech sectors.

      Contact us: [email protected]

      FOLLOW US

      Facebook
      Twitter
      • Home
      • About
      • Research
      • Banking
      • Debt Exclusives
      • Economy
      • Finance
      • Fintech
      • Opinion
      • Property
      • Sponsored
      • Sitemap