On October 14, China’s central bank released data indicating that, as of the end of September 2024, the total social financing in the country reached 402.19 trillion yuan, marking an 8% increase year-on-year. This figure includes a RMB loan balance of 250.87 trillion yuan directed toward the real economy, which represents a 7.8% increase compared to the previous year.
Additionally, in the first three quarters of 2024, the incremental total social financing amounted to 25.66 trillion yuan, a decrease of 3.68 trillion yuan from the same period last year. Within this, loans to the real economy increased by 15.39 trillion yuan, which is 4.13 trillion yuan less than last year’s growth.
Looking at direct financing, net financing from corporate bonds reached 1.59 trillion yuan, down by 545 billion yuan year-on-year. On the other hand, net financing from government bonds climbed to 7.18 trillion yuan, which is an increase of 1.22 trillion yuan compared to last year. Meanwhile, non-financial corporate stock financing within the country amounted to 170.5 billion yuan, reflecting a decrease of 503.9 billion yuan year-on-year.
Liang Si, a researcher at the Bank of China Research Institute, noted that there has been a significant acceleration in the issuance of special bonds since the third quarter, leading to a sustained increase in net financing from government bonds.
In terms of off-balance-sheet financing, trust loans increased by 356.2 billion yuan, representing a year-on-year rise of 292.3 billion yuan. Conversely, entrusted loans saw a decline of 15.5 billion yuan, while un-discounted bank acceptance bills dropped by 147.6 billion yuan.
Liang emphasized, “Since the beginning of this year, the cumulative volume of new trust loans has consistently increased, steadily enhancing support for the real economy and becoming a prominent highlight in off-balance-sheet financing.”
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