Chinese Central Bank Releases First Quarter Lending Report

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The People’s Bank of China (PBOC) has released its latest report on areas to which Chinese financial institutions directed credit in the first quarter of 2021.

PBOC data indicates that as of the end of the first quarter of 2021 the renminbi loan balance of financial institutions in China stood at 180.41 trillion yuan, for a YoY rise of 12.6%.

Loans increased by 7.67 trillion yuan in the first quarter, 574.1 billion yuan ahead of the figure for the same period in 2020.

Loans to enterprises and public institutions

The balance of domestic and foreign currency loans made to enterprise and public institutions was 116.09 trillion yuan as of the end of the first quarter of 2021, for a YoY rise of 10.9%, and a deceleration of 0.8 percentage points compared to the end of February, as well as a deceleration of 1.5 percentage points compared to the end of 2020.

Loans in this area increased 5.56 trillion yuan in the first quarter, for a reduction of 717 billion yuan compared to the same period last year.

The balance of short-term loans and notes financing for enterprises and public institutions was 42.49 trillion yuan as of the end of the first quarter, for a YoY rise of 2.3%, and a deceleration of 5.9 percentage points compared to the end of last year.

Loans in this area increased by 925.6 billion yuan in the first quarter, for a contraction of 2.2 trillion yuan compared to the same period last year.

The balance of medium and long-term loans to enterprises and public institutions was 70.55 trillion yuan, for a YoY rise of 16.9%. Loans in this area increased by 4.47 trillion yuan in the first quarter, 1.4 trillion yuan more than the figure for the same period in 2020.

When it comes to usage of loans made to enterprises and public institutions, the fixed asset lending balance was 50.19 trillion yuan as of the end of the first quarter, for a YoY rise of 11.9%, and an acceleration of 0.3 percentage points compared to the end of last year.

The operating loan balance was 48.14 trillion yuan, for a YoY rise of 11.9%, and a deceleration of one percentage point compared to the end of last year.

Loans to industry

As of the end of the first quarter of 2021 the balance of domestic and foreign currency medium and long-term loans made to industry was 11.92 trillion yuan, for a YoY rise of 24.2%, and an acceleration of 4.2 percentage points compared to the end of last year.

Loans in this area increased by 916 billion yuan in the first quarter, 487.3 billion yuan ahead of the figure for the same period last year.

The balance of medium and long-term loans made to heavy industry was 10.29 trillion yuan, for a YoY rise of 22.7%, and an acceleration of 4.2 percentage points compared to the same period last year.

The balance of medium and long-term loans made to light industry was 1.63 trillion yuan, for a YoY rise of 34.2%, and an acceleration of 3.5 percentage points compared to the end of last year.

As of the end of the first quarter of 2021 the balance of medium and long-term loans made to the services sector was 47.83 trillion yuan, for a YoY rise of 14.9%, and an acceleration of 0.6 percentage points compared to the end of last year.

Medium and long-term loans made to the services sector increased 2.77 trillion yuan in the first quarter, 546.1 billion yuan ahead of the figure for the same period last year.

The balance of medium and long-term loans made to the real estate sector increased by 5.6% compared to the same period last year, for a deceleration of 2.2 percentage points compared to the end of last year.

Financial inclusion loans

As of the end of the first quarter the balance of renminbi financial inclusion loans was 23.46 trillion yuan, for a YoY rise of 28%, and an acceleration of 3.8 percentage points compared to the end of last year. Loans in this area increased 1.96 trillion yuan in the first quarter, for an expansion of 925.9 billion yuan compared to the same period last year.

The financial inclusion micro and small-loan balance stood at 16.67 trillion yuan as of the end of the first quarter, for a YoY rise of 34.3%, and an acceleration of 4 percentage points compared to the same period last year. Loans in this area increased by 1.58 trillion yuan in the first quarter, for an expansion of 736 billion yuan compared to the same period last year.

The rural household operating loan balance stood at 6.35 trillion yuan as of the end of the first quarter, for a YoY rise of 14.6%, while the venture guarantee loan balance was 226.5 billion yuan, for a YoY rise of 49.4%.

The student assistance loan balance was 127.7 billion yuan, for a YoY rise of 10.5%.

Green lending

The balance of domestic and foreign currency green loans was 13.03 trillion yuan as of the end of the first quarter of 2021, for a YoY rise of 24.6%, which is 12 percentage points ahead of growth in all forms of lending.

Direct loans to carbon emissions reduction projects stood at 6.47 trillion yuan, while indirect loans to such projects stood at 2.29 trillion yuan, accounting for 67.3% of all green loans.

The balance of loans made to green infrastructure upgrades totalled 6.29 trillion yuan, for a rise of 25%, while the balance of clean energy loans stood at 3.4 trillion yuan, for a rise of 17.2%.

The balance of green loans to the transit, warehousing and postal sectors was 3.85 trillion yuan, for a YoY rise of 15%, while the balance of green loans to the power, heating and supply sectors was 3.73 trillion yuan, for a YoY rise of 19.7%.

Real estate sector lending

As of the end of the first quarter the balance of renminbi loans to the real estate sector stood at 50.03 trillion yuan, for YoY growth of 10.9%, 1.7 percentage points behind growth in all leading, and 0.6 percentage points behind the growth rate at the end of last year.

Loans in this area increased by 1.67 trillion yuan in the first quarter, accounting for 21.7% of the increase in all lending during the period, 3.7 percentage points below the reading for full year 2020.

The balance of real estate development loans stood at 12.42 trillion yuan as of the end of the first quarter, for a YoY increase of 4.4%, and a deceleration of 1.7 percentage points compared to the end of last year.

The balance of loans for the development of welfare residential housing was 4.72 trillion yuan, for a YoY decline of 0.2% and a deceleration of 1.2 percentage points compared to the end of last year.

The personal home loan balance was 35.67 trillion yuan, for a YoY rise of 14.5%, and a deceleration of 0.1 percentage points compared to the end of last year.

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