China's dynamic fiscal policies are sparking a credit boom! In the first five months of 2025, the People's Bank of China reported issuing 10.68 trillion yuan in new yuan-denominated loans, setting the stage for an economic surge.
The broad money supply, known as M2, increased by 7.9% year-on-year to reach 325.78 trillion yuan by the end of May. Meanwhile, total social financing stock jumped 8.7% to 426.16 trillion yuan, largely driven by a robust issuance of government bonds and accelerated local government special bonds.
Household loans grew by 572.4 billion yuan, and loans to enterprises surged by 9.8 trillion yuan, highlighting the effectiveness of proactive fiscal measures. Even the M1 money supply, covering cash in circulation and demand deposits, saw a steady rise of 2.3%, reinforcing market confidence.
Finance expert Dong Ximiao notes that these fiscal initiatives are not only boosting economic activity but also igniting optimism for future investment opportunities. This surge is a promising signal for the evolving economic landscape in Asia. Stay tuned for more updates and insights 🚀📈
Reference(s):
cgtn.com
