China has seen a solid double-digit rise in total social financing (TSF) as of the end of May, as regulators push commercial banks to step up the the provision of credit to businesses in order to better support the Chinese economy.
As of the end of May outstanding TSF stood at 329.19 trillion yuan, for a year-on-year (YoY) increase of 10.5%, according to preliminary data released by the People’s Bank of China (PBOC).
The renminbi loan balance to the real economy was 202.03 trillion yuan, for a YoY rise of 10.9%, while foreign currency loans to the real economy were 2.34 trillion yuan in renminbi terms, for a YoY rise of 5.6%.
The entrusted loan balance was 10.92 trillion yuan, for a YoY decline of 0.5%, while the trust loan balance was 4.05 trillion yuan, for a YoY drop of 29.4%.
The balance of undiscounted banker’s acceptances was 2.72 trillion yuan, for a YoY decline of 22.7%.
The enterprise bond balance was 31.29 trillion yuan, for a YoY rise of 10.7%, while the government bond balance was 56.1 trillion yuan, for a YoY rise of 17.5%.
The non-financial enterprise domestic equity balance was 9.91 trillion yuan, for a YoY rise of 14.5%.
In structural terms, the balance of renminbi loans to the real economy as of the end of May accounted for 61.4% of all outstanding TSF, for a YoY rise of 0.2 percentage points.
Foreign currency loans to the real economy accounted for a 0.7% share, staying flat compared to the same period last year, while entrusted loans had a 3.3% share, for a YoY decline of 0.4 percentage points, and trust loans were 1.2%, for a decline of 0.7 percentage points.
Undiscounted banker’s acceptances accounted for 0.8% of TSF, for a decline of 0.4 percentage points.
The enterprise bond balance accounted for 9.5% of all TSF, staying flat compared to the same period last year, while the government bond balance had a 17% share, for a YoY rise of 1 percentage point.
The non-financial enterprise domestic equity balance was 3% of TSF, for a YoY rise of 0.1 percentage points.
