The Chinese banking system has seen a sizeable YoY rise in renminbi lending as Beijing continues to drive credit extension in the wake of the COVID-19 pandemic.
The renminbi lending balance stood at 177.68 trillion yuan at the end of February for YoY growth of 12.9%, according to data released by the Chinese central bank on 10 March.
This YoY growth figure marked an acceleration of 0.2 percentage points compared to the previous month, and 0.8 percentage points compared to the same period last year.
Renminbi loans increased by 1.36 trillion yuan in the month of February, 452.9 billion yuan ahead of the figure for the same period last year.
China’s M2 money supply balance stood at 223.6 trillion yuan as of the end of February, for a 10.1% rise compared to the same period last year, and an acceleration of 0.7 percentage points compared to the end of January.
The M1 money supply balance stood at 59.35 trillion yuan, for a YoY rise of 7.4%, and a deceleration of 7.3 percentage points compared to the end of January.
The total social financing (TSF) increase was 1.71 trillion yuan in February, 839.2 billion yuan more than the figure for the same period last year.
As of the end of the February outstanding TSF was 291.36 trillion yuan, for a YoY rise of 13.3%.
