China’s financing activity further improves in June
China’s financing activity maintained steady momentum in the first half of the year, with further improvements seen in June, indicating a recovery in market confidence, official data showed on Monday.
The country’s aggregate social financing — the total amount of financing to the real economy — reached 22.83 trillion yuan ($3.18 trillion) in the first six months of the year, an increase of 4.74 trillion yuan compared to the same period last year, according to the People’s Bank of China, the country’s central bank.
The PBOC said that outstanding aggregate social financing stood at 430.22 trillion yuan by the end of June, marking an 8.9 percent year-on-year increase, up from 8.7 percent at the end of May.
Zou Lan, deputy governor of the PBOC, said at a news conference on Monday that the transmission of monetary policy takes time, and the effects of monetary measures already implemented will continue to unfold.
Zou said the PBOC will continue to pursue a moderately loose monetary policy and calibrate the strength and pace of policy implementation based on domestic and international economic and financial conditions as well as financial market dynamics.
“Our goal is to better support the expansion of domestic demand, stabilize social expectations, stimulate market vitality and contribute to achieving the full-year economic and social development goals and tasks,” Zou said.
The broad money supply, or M2, reached 330.29 trillion yuan at the end of last month, rising 8.3 percent year-on-year, compared with 7.9 percent a month earlier, the central bank said.
Meanwhile, the country’s M1 money supply — which represents how much money is actively being used in the economy — grew by 4.6 percent year-on-year as of the end of June, up from 2.3 percent at the end of May, which experts said pointed to rising spending appetites among market players.
The country’s new yuan-denominated loans came in at 12.92 trillion yuan in the first six months of the year, the PBOC added.
