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Here’s what you need to know about China in the past 24 hours

Chinese banks extended 990 billion yuan in new yuan loans in December, up from November and outpacing analysts’ forecasts as government stimulus measures slowly spur credit demand.

Financial institutions offered 18.09 trillion yuan of new loans in 2024, according to data released by the People’s Bank of China on Tuesday. It was lower than the previous year’s volume of 22.75 trillion yuan, representing the first annual drop in 13 years.

Aggregate financing, a broad measure of credit, rose 32.26 trillion yuan, less than the 35.59 trillion yuan recorded in 2023, PBOC figures showed.

Broad M2 money supply grew 7.3 percent from a year earlier in December, faster than the 7.1 percent growth the month prior.

The narrower M1 money supply fell 1.4 percent in December from a year earlier, from a 3.7 percent drop in November.

Outstanding yuan loans grew 7.6 percent in December from a year earlier, slightly slower than 7.7 percent in November.

The data also showed that outstanding social financing stood at 408.34 trillion yuan at the end of last month, up 8 percent year on year.

Xuan Changneng, deputy governor of the PBOC, said at a press conference on Tuesday that China's overall monetary policy has yielded positive results in 2024. He highlighted that the year-on-year growth of social financing, the M2 and yuan loans surpassed the nominal economic growth rate.

Xuan also indicated that the PBOC will implement a moderately loose monetary policy this year. A comprehensive use of monetary policy tools, such as interest rates and the reserve requirement ratio, will be employed to ensure ample liquidity and an accommodative financing environment, he said.

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Editor: LI Yanxia

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