New Yuan Bank Loans Hit Record High

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Chinese banks granted a record number of new loans in January demonstrating Beijing’s attempts to stabilise development in the second-largest economy in the world. At 4.92 trillion yuan ($684 billion), the new loans denominated in yuan set a record high, surpassing the 1.17 trillion yuan in December and the 4.9 trillion yuan ended in January 2023. The total financing, which comprises stock market funding, bonds, and bank lending, was 6.5 trillion yuan last month—506.1 billion more than it was a year ago.

Beijing has resisted enacting huge stimulus, instead providing fiscally prudent intervention. In December, policymakers maintained the tone of targeted assistance and responsible monetary policies.

It is generally anticipated that the government would set a 5% GDP growth target for 2024. With the announcement of a 50 basis-point reduction in the reserve requirement ratio for commercial banks, the People’s Bank of China (PBOC) has injected 1 trillion yuan worth of liquidity into the market. Additionally, it reduced the lending rate by 25 basis points in order to support the agricultural and small business sectors.

DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.

E.F Team

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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