According to the report from the People's Bank of China (PBoC), in December, Chinese banks provided new loans in yuan in the amount of 0.990 trillion yuan. Therefore, credit growth accelerated sharply compared to November (0.580 trillion yuan, the lowest value since 2012), helped by government stimulus measures, including increased bond issuance and enhanced overall credit support. Economists had expected lending to grow by 0.850 trillion yuan. New yuan loans totaled 18.09 trillion yuan for the entire year 2024.
Meanwhile, total social financing grew by 2,860 trillion yuan, compared with an increase of 2,340 trillion yuan in November. Consensus estimates suggested an increase of 2.0 trillion yuan.
The PBoC said that in December, M2, the widest measure of money supply, rose by 7.3% per year, accelerating compared to November (+7.1% per year). Economists also expected growth of 7.3%. Outstanding loans in yuan rose by 7.6% per year (the lowest increase on record) compared with +7.7% per year in November. Consensus estimates also suggested an increase of 7.6% per annum.