In April this year, new RMB lending in China amounted to RMB 645.4 billion ($94.9 billion), decreasing by RMB 823.1 billion ($121 billion) year on year, according to the People’s Bank of China (PBC).
The broad money (M2) balance in China totaled RMB 249.97 trillion ($36.8 trillion), up 10.5 percent year on year, 0.8 percentage points higher than the increase in March.
The scale of social financing amounted to RMB 326.46 trillion ($48 trillion) as of the end of April, up 10.2 percent year on year, 0.4 percentage points slower than the increase at the end of March. The increase in social financing reached RMB 910.2 billion ($133.9 billion) in April, down by RMB 946.8 billion year on year, while it came to RMB 4.65 trillion in March this year, signaling insufficient demand for finance in the real economy.
The limit of new special bonds will amount to RMB 3.65 trillion in 2022, with RMB 1.35 trillion being issued in the first quarter, indicating there is a remaining limit of RMB 2.3 trillion. Based on previous experience, 80 percent of new special bonds will be issued in the second quarter of the year, which means there will be RMB 1.57 trillion issued in April-June. Since some local governments will issue their local government bonds in the May-June period, the scale of government debt will exceed RMB 1.0 trillion for the last two months of the second quarter.