Emirates News Agency – China’s new yuan lending surges in 2022

BEIJING, 11th January 2023 (WAM) — China’s new yuan-denominated loans totaled 21.31 trillion yuan (about $3.15 trillion) in 2022, an increase of 1.36 trillion yuan year-on-year, according to central bank data, released by China’s Xinhua News Agency on Tuesday.

In December alone, new yuan lending totaled 1.4 trillion yuan, up 266.5 billion yuan year on year, according to the People’s Bank of China (PBOC).

M2, a broad measure of the money supply that covers cash in circulation and all deposits, rose 11.8% year on year to 266.43 trillion yuan late last month, according to the PBOC.

M2 growth was 0.6 percentage point lower than at the end of November, but 2.8 percentage point higher than in the same period of the previous year.

The narrow measure of the money supply (M1), which includes money in circulation and sight deposits, increased by 3.7% year on year to 67.17 trillion yuan at the end of last December.

M1 growth slowed by 0.9 percentage points compared to end-November but was 0.2 percentage points higher than in the same period of 2021.

The outstanding M0, the amount of cash in circulation, increased by 15.3% year on year to 10.47 trillion yuan at the end of last December.

The central bank has injected 1.39 trillion yuan of net liquidity into the market throughout 2022, according to data from the PBOC.

Newly added social finance, a measure of funds individuals and non-financial businesses receive from the financial system, totaled 32.01 trillion yuan last year, up 668.9 billion yuan from the same period in 2021 .

The real economy received 20.91 trillion yuan in new yuan lending, an increase of 974.6 billion yuan year on year.

Data on Tuesday also showed that China’s new yuan deposits in 2022 amounted to 26.26 trillion yuan, up 6.59 trillion yuan, year on year. At the end of December, the total amount of yuan deposits amounted to 258.5 trillion yuan, an increase of 11.3% year on year.

For all of 2022, RMB deals for cross-border trade totaled 10.51 trillion yuan and RMB deals for direct investment reached 6.76 trillion yuan.

The PBOC pledged to strengthen the implementation of prudent monetary policy and further support the real economy in a statement released after the last quarterly meeting of its Monetary Policy Committee.

The central bank said it would work to keep liquidity reasonably high, maintain effective growth in total credit volume and ensure that increases in the money supply and overall funding are generally in line with nominal economic growth.

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