China's yuan loans expand amid policy support

BEIJING -- China's yuan-denominated loans rose by 16.52 trillion yuan (about $2.3 trillion) in the first 10 months of 2024, central bank data showed on Monday.

China has adopted a series of pro-growth policies, which have not only stabilized social expectations, but also boosted market confidence, accelerated capital flow, and improved market activity, experts said.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 7.5 percent year-on-year to 309.71 trillion yuan at the end of October 2024, according to the People's Bank of China.

The M2 growth rate continued to pick up, demonstrating the country's greater efforts in maintaining stable economic growth, analysts said.

The M1, which covers cash in circulation plus demand deposits, stood at 63.34 trillion yuan at the end of October, down 6.1 percent year-on-year.

The M0, which indicates the amount of cash in circulation, rose by 12.8 percent from the previous year to a total of 12.24 trillion yuan at the end of last month, the data revealed.

Outstanding yuan loans reached 254.1 trillion yuan at the end of October, an increase of 8 percent year-on-year.

Data also showed that outstanding social financing stood at 403.45 trillion yuan at the end of October, up 7.8 percent year-on-year.

Despite a high base last year, social financing managed to maintain high growth?— reflecting the greater role of finance in supporting the real economy.

Experts believe there is still a solid foundation for steady financial growth, considering that some incremental policies are still being implemented.