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Home > News > Valuable News > Major financial data improved significantly in the first three quarters

Major financial data improved significantly in the first three quarters

ECHEMI 2019-10-24

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On October 15, the people's Bank of China released financial statistics for the third quarter, showing that in the first three quarters, RMB loans increased by 13.63 trillion yuan, a year-on-year increase of 486.7 billion yuan; social financing scale increased by 18.74 trillion yuan, a year-on-year increase of 3.28 trillion yuan; at the end of September, the balance of broad money (M2) was 195.23 trillion yuan, a year-on-year increase of 8.4%.

According to the people's Bank of China, on the whole, the liquidity of the banking system is reasonable and abundant, the scale of monetary credit and social financing grows moderately, and the market interest rate runs smoothly. Major financial data have improved significantly, financial support for the real economy continues to increase, the next stage of stable operation of the economy can be expected. Data show that RMB loans increased by 13.63 trillion yuan in the first three quarters, an increase of 486.7 billion yuan year-on-year.

In terms of sub sectors, loans from the household sector increased by 5.68 trillion yuan, including 4.14 trillion yuan for medium and long-term loans, 8.22 trillion yuan for non-financial enterprises and organizations, including 4.84 trillion yuan for medium and long-term loans. In September, RMB loans increased by 1 trillion and 690 billion yuan, an increase of 306 billion 900 million yuan over the same period last year. From the perspective of the actual investment direction of medium and long-term loans of enterprises, the medium and long-term loans of infrastructure industry grew rapidly, with a year-on-year growth of 8.9% at the end of September, the highest point in this year; the medium and long-term loan growth of manufacturing industry rebounded significantly, especially the medium and long-term loans of high-tech manufacturing industry maintained a rapid growth; the growth rate of service industry (excluding real estate) also increased significantly, with a year-on-year growth of 11.4% at the end of September.

Zhou Xuedong, a spokesman for the people's Bank of China, said the actual direction of medium - and long-term loans reflected the increasing financial support for the real economy. The structural monetary and credit policies have achieved positive results and maintained the characteristics of increasing volume, expanding in scope and optimizing in structure. Inclusive small and micro loans continued to maintain rapid growth, and the number of small and micro households supported by credit also maintained rapid growth.

In terms of investment direction, 70% of small and micro loans are invested in labor-intensive industries such as manufacturing industry. The growth rate, increment and proportion of private enterprise loans are higher than that of the same period of last year. "This shows that the people's Bank of China has played a positive role in guiding the structural monetary and credit policies." Ruan Jianhong, director of the Statistics Department of the people's Bank of China, said. Data show that at the end of September, the balance of broad money (M2) was 195.23 trillion yuan, an increase of 8.4% year-on-year, 0.2 and 0.1 percentage points higher than that at the end of last year and the same period of last year respectively; the balance of narrow money (M1) was 55.71 trillion yuan, an increase of 3.4% year-on-year, the growth rate was the same as that at the end of last year, 0.6 percentage points lower than that at the same period of last year. Ruan Jianhong said that the recovery of M2 growth was related to the following factors.

First, the ability of commercial banks to use funds has been enhanced, and bank loans have maintained a rapid growth. At the end of September, the balance of RMB loans at the end of the month was 149.92 trillion yuan, up 12.5% year-on-year, 0.1 percentage points higher than that at the end of last month. Second, bank bond investment grew rapidly, supporting the issuance of government bonds and corporate bonds. The third is that the scale of commercial banks' financing funds to non bank financial institutions by way of equity investment is narrowing down. At the end of September, the financing funds dropped by 5.8%, narrowing by 4.1%. "This is exactly the embodiment of the effect of the people's Bank of China's adherence to a sound monetary policy, moderate intensity of policy and reasonable and sufficient liquidity." According to the data of stable macro leverage ratio, the total increase of social financing scale in the first three quarters was 18.74 trillion yuan, 3.28 trillion yuan more than the same period of last year. According to Ruan Jianhong, there are four main reasons for the recovery of social finance. First, financial support for real economy credit increased. In the first three quarters, RMB loans to real economy increased by 13.9 trillion yuan, an increase of 1.1 trillion yuan year on year. Second, the proportion of corporate bonds rose, accounting for 12.8% of the social financing scale, 1.8 percentage points higher than the same period last year. Third, the issuance of special bonds by local governments has increased, with a net financing of 2.17 trillion yuan, an increase of 470.4 billion yuan over the same period last year. Fourth, the decline in off balance sheet financing was significantly improved, and the decline in entrusted loans, trust loans and undiscounted bank acceptance bills was narrowed, with a total decrease of 1.03 trillion yuan compared with the same period last year. "The growth rate of social finance picked up and the increment also increased. We expect the macro leverage ratio to remain stable in the third quarter." Ruan Jianhong said.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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