In August, the new RMB lending amounted to RMB 1.28 trillion ($0.19 trillion), RMB 69.4 billion ($10.1 billion) more than that recorded in August of the previous year, according to the People’s Bank of China (PBC).
The broad money (M2) balance totaled RMB 213.68 trillion ($31.2 trillion), up 10.4 percent year on year, 0.3 percentage points lower than that in July, while 2.2 percentage points higher than August of the previous year, indicating a double-digit growth for six consecutive months. The scale of social financing increased to RMB 3.58 trillion ($0.52 trillion) in August, RMB 1.39 trillion ($0.2) more than August in 2019.
Wen Bin, chief researcher of China Minsheng Bank said China continued to increase the support for the real economy from financial sector since the outbreak of COVID-19 pandemic. The reasonable growth in M2 helped to support real economy and prevent potential risks. The improvements in PPI and the sub-index for new orders of PMI indicated that positive changes have taken place in the business activities of enterprises.