China’s social financing surged by 3.61 trillion yuan ($501.1 billion) year-on-year to 16.34 trillion yuan in the first four months of 2025, official data showed, indicating that the government’s pro-growth policies are gaining traction in bolstering the real economy, a Chinese expert said.
The People’s Bank of China (PBC), the central bank, released the figures on Wednesday. Notably, yuan loans issued to the real economy rose by 9.78 trillion yuan, an increase of 339.7 billion yuan compared with the same period last year, according to a notice on the website of the PBC.
In the first four months, yuan loans increased by 10.06 trillion yuan. By sector, household loans rose by 518.4 billion yuan. Loans to enterprises and institutions surged by 9.27 trillion yuan.
At the end of April, broad money supply (M2) stood at 325.17 trillion yuan, up 8 percent year-on-year, while narrow money supply (M1) stood at 109.14 trillion yuan, up 1.5 percent.
The April financial statistics reflect an encouraging trend, and the figures underscore the effectiveness of policies rolled out since September 2024, which are now translating into tangible improvements in economic activity, Zhao Qingming, a Beijing-based veteran financial expert, told the Global Times on Wednesday.
"The growth in social financing and credit indicates stronger financial support for the real economy, boosting economic expansion. At the same time, improved investment and business conditions have spurred fresh financing demand, creating a positive cycle between policy stimulus and market-driven growth," Zhao said.
Following the PBC’s announcement to cuts to interest rates and reserve requirement ratios on May 7, Zhao predicted further positive effects on financial data in May.
The PBC announced on May 7 that it would cut the reserve requirement ratio by 0.5 percentage points for financial institutions from May 15. The move is expected to provide about 1 trillion yuan in long-term liquidity to the market, PBC Governor Pan Gongsheng told a press conference.
The PBC also announced it would cut the rate for seven-day reverse repos by 0.1 percentage points starting May 8 to better implement its moderately loose monetary policy and enhance support for the real economy. The policy rate reduction is expected to lead the loan prime rate, a market-based benchmark lending rate, down by 0.1 percentage points, according to Pan.
The reduction in reserve ratios will enhance banks’ lending capacity, while lower borrowing costs are expected to stimulate financing demand among businesses and households, supporting further improvements in financial indicators, Zhao said.
原文地址：http://en.people.cn/n3/2025/0515/c90000-20315234.html